CH 1 Flashcards
(13 cards)
What is the definition of economics?
A systematic and scientific study or process of allocating scarce resources for the benefit of posterity
This definition emphasizes the focus of economics on resource allocation and future benefits.
What did Thomas Robert Malthus claim in his An Essay on the Principle of Population?
Population will be checked by famine and disease leading to Malthusian Catastrophe
Malthus argued that population grows geometrically while resources, especially food, grow arithmetically.
What is the formula that represents scarcity?
LIMITED RESOURCES + UNLIMITED WANTS = SCARCITY
This formula illustrates the fundamental economic problem of scarcity.
What does allocation in the context of economics refer to?
The distribution of scarce resources
Allocation is essential in economics as it addresses how resources are shared among competing wants.
True or False: If there is no scarcity, there is no need for economics.
True
This statement reflects the core principle that economics arises from the necessity to manage limited resources.
What is the primary purpose of the science of economics?
To answer scarcity and resolve the issue through proper apportionment and distribution of resources
Economics aims to find effective ways to allocate limited resources to meet unlimited needs.
What is the central concept of Malthusian Catastrophe?
Population will be checked by famine and disease.
How does population growth compare to resource growth according to Malthus?
Population multiplies geometrically, while resources (food) multiply arithmetically.
What is the implication of the statement ‘No scarcity, no need for economics’?
Economics arises from the existence of scarcity.
What are the characteristics of human needs and wants?
Humans have unlimited needs and insatiable wants.
What is the nature of resources in economics?
Resources are limited and inadequate.
What was the primary purpose of establishing the science of economics?
To answer scarcity.
Fill in the blank: Proper apportionment and distribution of resources is how you resolve _______.
scarcity.
