Podcast
Questions and Answers
What is the main focus of economics?
What is the main focus of economics?
Which branch of economics studies the behavior of individual consumers and firms and the allocation of scarce resources?
Which branch of economics studies the behavior of individual consumers and firms and the allocation of scarce resources?
The word 'economics' is derived from which language?
The word 'economics' is derived from which language?
Which economic resource represents the ability to perform work and produce goods and services?
Which economic resource represents the ability to perform work and produce goods and services?
Signup and view all the answers
Which type of resource is essential for any production process?
Which type of resource is essential for any production process?
Signup and view all the answers
Which factor of production is associated with the ability to make decisions, take risks, and create new businesses?
Which factor of production is associated with the ability to make decisions, take risks, and create new businesses?
Signup and view all the answers
What is the study of economics described as in the text?
What is the study of economics described as in the text?
Signup and view all the answers
Why are economic resources limited?
Why are economic resources limited?
Signup and view all the answers
Which economic resource includes money and equipment used in the production of goods and services?
Which economic resource includes money and equipment used in the production of goods and services?
Signup and view all the answers
Which type of resource cannot be replaced or reproduced once it is used?
Which type of resource cannot be replaced or reproduced once it is used?
Signup and view all the answers
Study Notes
Capital and Resources
- Capital includes money, machinery, raw materials, and other physical necessities for production.
- Capital is dependent on the level of savings.
Economic Resources/Factors of Production
- Entrepreneur: combines resources for production or services.
Scarcity and Resources
- Scarcity: wants and needs exceed available resources.
- Resources:
- Natural Resources: already existed.
- Human Resources: labor services.
- Man-made Resources: machines, equipment.
- Reasons for limited resources:
- Overpopulation.
- Illegal issues.
- Conversion of agricultural lands into establishments and buildings.
- Corruption.
- Negligence.
- Others.
Fundamental Economic Concepts
- Opportunity Cost: the highest-valued alternative forgone when a choice is made.
- Marginalism: analyzing additional costs or benefits resulting from a decision.
- Sunk Cost: money spent; irrelevant to further financial decisions.
- Efficient Markets: no free lunch; everything has a cost.
Fundamental Economic Questions
- What to produce?: decide on products to produce in the economy.
- How to produce?: organize production and combine resources.
- How much to produce?: determine the quantity of each good.
- For whom to produce?: satisfy the wants of each consumer.
Economics
- Economics: the study of meeting unlimited needs and wants with scarce resources.
- Economics: the proper allocation of scarce resources.
- Economics is a social science dealing with human behavior.
Branches of Economics
- Microeconomics: study of individual consumers and firms, and market allocation of resources.
- Macroeconomics: study of the economy as a whole, explaining fluctuations and policies.
Divisions of Economics
- (Not specified in the provided text.)
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on economic resources like capital and entrepreneurship, as well as the concept of scarcity in economics. Explore the factors of production and the role of entrepreneurs in combining resources for production.
