Economics

Question 1

Scholarly definition:

Answer 1

Economics concerns situations in which choices must be made about how to use limited resources

Question 2

Ethymological Definition:

Answer 2

Originated form the Greek work “oikonomia” which means management of the household

Question 3

Two divisions of economics:

Answer 3

Microeconomics- small scale, individual agents
Macroeconomics- big picture, trade, foreign exchange

Question 4

What is scarcity?

Answer 4

-It is the fundamental economics problem.

Question 5

What is relative scarcity?

Answer 5

Lack of resources but have plenty of others

Question 6

Choices:

Answer 6

Trade off- picking one thing from all other possibilities
Opportunity cost- the cost of the house not taken

Question 7

Basic economic questions:

Answer 7

What to produce?
How to produce?
How much to produce?
For whom to produce?
How to produce more overtime?

Question 8

Economics and other disciplines:

Answer 8

-It uses logic and Mathematics
-it involves history
-it emphasizes science and technology