Economics 101

Study Notes

Origin and Definition of Economics

The term 'economics' originates from the Greek word "oikonomia," which means "household management."
Economics is defined as the study of how individuals and societies allocate their limited resources to satisfy their unlimited wants.

Three Fundamental Questions in Economics

What to produce? Determining which goods and services to produce based on available resources and consumer demand.
How to produce? Deciding the methods and processes used to create goods and services efficiently.
For whom to produce? Identifying which segments of the population will receive the goods and services produced.

Characteristics of Microeconomics

Focuses on individual agents: Analyzes decisions made by households and firms.
Examines market behavior: Investigates supply and demand dynamics in specific markets.
Aims to understand price formation: Studies how prices are determined and how they affect resource allocation.
Considers competition types: Looks at different market structures, including perfect competition and monopoly.

Characteristics of Macroeconomics

Considers the economy as a whole: Analyzes aggregate economic phenomena rather than individual markets.
Examines national income: Studies GDP, unemployment rates, and inflation to gauge overall economic health.
Investigates economic policies: Looks at fiscal and monetary policies and their impact on economic stability and growth.
Focuses on long-term economic trends: Evaluates economic growth, business cycles, and government interventions over time.

Description

Test your knowledge of economics with this quiz! Learn the definition of economics, its origins from the Greek word "oikonomia," and explore the concept of how society allocates scarce resources. Challenge yourself and expand your understanding of this fascinating field!