understanding economics

Question 1

where dies the word economics come from and what does it stand for

Answer 1

Ancient Greek word oikonomos
which means household( smallest form of society)

Question 2

what is economics

Answer 2

the study of distribution and usage of resources to societies in order to satisfy unlimited wants and needs

Question 3

according to Lionel Robbins

Answer 3

-study of human behavior
- relationship between ends and scarce, means that both have alternative uses

Question 4

according to Paul A. Samuelson

Answer 4

• economics is the study of how society choose
• use finite resources that may have alternate uses
• to create certain goods and to allocate them for use

Question 5

means that we are not only studying the how’s and why’s of the decision we are studying the decision making aspect

Answer 5

finite resources

Question 6

what is scarcity?

Answer 6

available resources are limited to satisfy our wants and needs

Question 7

what are the branches of economics and what are they

Answer 7

1. macroeconomics
   -disccuss aggregate(total economic activity) related economic processes
   -imposes assumptions that are used to make macroeconomic models
2. microeconomics
   - economic division that examines how individual make choices on allocating scarce capital

Question 8

what are the views of economics and what are they about

Answer 8

1. positive economics
   -based on relevant facts and figures
   - focuses on explaining economic development
   - seeks to create a cause and effect relationship
2. normative economics
   - based on own opinion
   - focuses on political view
   - seeks to summarize desire of individuals

Question 9

identified the wealth of nations which are ____
-his book marked the beginning of economics as a distinct discipline

Answer 9

Adam smith

Question 10

first major work das capital
focused on labor theory and what he viewed as capital exploitation ( capitalist workers are forced to sell their labor power for a lower price due to their lack of ownership of production means
- his goal can only be achieved by overthrowing ____

Answer 10

karl marx
social conditions

Question 11

wrote the principle of economics
- theory neoclassical economics/marginalism was founded

what was one of his notable principle?

Answer 11

Alfred marshal

the price and output of a good is determined by both supply and demand

Question 12

his book general theories of work OPENED UP MACROECNOMICS

Answer 12

John Maynard keynes

Question 13

what is contemporary economics

Answer 13

also known as mathematical economic
- it uses calculus, linear statistical and computer science to analyze unintended effects

Question 14

a simplified description of the relationship between two or more variables
- aims ti address real world problem

Answer 14

theory

Question 15

• used for testing theories
• it is often used by economists rather than a theory

Question 16

• a branch that studies strategic interactions between agents and applied mathemyics
• provides a structured social modeling approach in which decision makers communicate with the other team

Question 17

what are the five economic goal

Answer 17

FSEEE

macroeconomic objectives

1. full employment
   2.stability
2. economic growth

microeconomics objectives
4. efficiency
5. equity