Intro to Economics

Question 1

Define economics.

Answer 1

It is a system that society uses to determine what to make and who gets what.

Question 2

What is the economy?

Answer 2

The sum of all transactions that take place within a certain area during a certain time.

Question 3

Macroeconomics

Answer 3

Looks at the economy as a whole or in big terms ( GDP, unemployment, inflation)

Question 4

Mircoeconomics

Answer 4

Looks at the individual parts of the economy such as business firms.

Question 5

Who is Thomas Malthus?

Answer 5

He is a British economist who theorized that an orderly society was doomed because the population would outstrip the food supply. This would result in famine, disease, and war.

Question 6

Scarcity

Answer 6

There are so many of these to go around

Question 7

Scarcity leads to…. ( 3 things)

Answer 7

1. what to produce
2. how to produce
3. for who to produce

Question 8

Guns v Butter

Answer 8

A concept in where what items should be produce and for who. Guns refers to the military meanwhile Butter refers to people

Question 9

Who is Thomas Carlyle?

Answer 9

He is a Scottish historian who read Malthus work and pronounced economics as a dismal science.