INTRODUCTION TO ECONOMICS

Question 1

comes from the Greek word oikos and nomos which means household management

Answer 1

economics

Question 2

commodity or service being short in supply relative to its demand

Answer 2

scarcity

Question 3

reasons for scarcity

Answer 3

• overpopulation
• unjust distribution
• resources decrease

Question 4

according to bautista, ________ is a science that deals w/ the management of scarce resource

Answer 4

economics

Question 5

according to him, economics is simply scarcity and choice

Answer 5

slavin

Question 6

all other things are held constant/equal

Answer 6

ceteris paribus

Question 7

methodology of economics (2)

Answer 7

• positive
• normative

Question 8

is an economic analysis that considers economic conditions “as they are” / “as it is”

Answer 8

positive economics

Question 9

example of positive economics

Answer 9

the economy is now experiencing a slowdown because of too much politicking and corruption in the government

Question 10

incorporates value judgment about economics about ehat the economics should be like

“as it should be”

Answer 10

normative economics

Question 11

basic economic problems (3)

Answer 11

• what to produce
• how to produce
• for whom to produce

Question 12

all natural resources given by the nature used in the production process

Answer 12

land

Question 13

any form of human effort exerted in the production

talents available for production

Answer 13

labor

Question 14

refers to the human made goods used in the production of other goods and services

manufacturing aids

Answer 14

capital

Question 15

process of producing and purchasing capital goods

Answer 15

investment

Question 16

consumer goods satisfy wants directly while capital goods…

Answer 16

indirectly by aiding production of consumer goods

Question 17

the person who organizes, manages and plans

special human resources, distinct from labor

Answer 17

entrepreneur

Question 18

money in factors of production

Answer 18

• land - rent
• capital - interest / money
• labor - salary
• entrepreneur - profit

Question 19

produce more and better goods and services or higher standard of living

Answer 19

economic growth

Question 20

provides suitable jobs for citizens

Answer 20

full employment

Question 21

achieve maximum fulfillment of wants using the available productive resources

Answer 21

economic efficiency

Question 22

avoid inflation and deflation, upswings or downswings

Answer 22

price level stability

Question 23

guarantees businesses have a high degree of freedom in economic activities

Answer 23

economic freedom

Question 24

ensure that no group of citizens faces poverty

Answer 24

equitable distribution of income

Question 25

provide those who are chronically ill, disabled, laid off, aged to earn minimal levels of income

Answer 25

economic security

Question 26

seek a reasonable balance in international trade and financial transaction

Answer 26

balance of trade

Question 27

is the branch of economics that deals with the individual decisions of units in the economy

Answer 27

microeconomics

Question 28

branch of economics as a whole

Answer 28

macroeconomics

Question 29

collection of specific economic units treated as if they were one unit

Answer 29

aggregate

Question 30

a particular set of institutional arrangements and a coordinating mechanism to respond to economizing problem

Answer 30

economic system

Question 31

places where buyers and sellers come together

Answer 31

market

Question 32

places where buyers and sellers come together

Answer 32

market

Question 33

subsistence economy, backward type, characterized by a system where the production of products trading and distribution of incomes are sanctioned by custom

Answer 33

traditional

Question 34

economy wherein government dictates

Answer 34

command

Question 35

resources are privately owned and people themselves makes the decision "market economy"

Answer 35

capitalism

Question 36

economic system wherein key enterprises order are owned by the state

Answer 36

socialism

Question 37

this economy is a mixture of the market system and command system

Answer 37

mixed system

Question 38

also known as laissez-faire capitalism

Answer 38

pure competition

Question 39

importance of studying economics

Answer 39

• understand society • understand global affairs • to be an informed individual