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Questions and Answers
What distinguishes economics from other sciences?
What distinguishes economics from other sciences?
- It studies human behavior, which evolves. (correct)
- Its principles are universally applicable.
- It focuses on quantifiable data.
- It relies on controlled experiments.
Why is knowledge of group behavior useful in economics?
Why is knowledge of group behavior useful in economics?
- It allows for precise predictions of individual actions.
- It guides general policy and decision-making. (correct)
- It guarantees economic stability.
- It eliminates the need for statistical analysis.
Which of the following best describes an economy?
Which of the following best describes an economy?
- A closed system with fixed resources.
- A complex system with interdependent actors. (correct)
- A simple system with isolated transactions.
- Static and resistant to change.
Opportunity cost is a key concept in economics because it highlights:
Opportunity cost is a key concept in economics because it highlights:
What is the primary focus of analytical economics?
What is the primary focus of analytical economics?
Which statement exemplifies normative economics?
Which statement exemplifies normative economics?
What is a key component of the scientific method in economics?
What is a key component of the scientific method in economics?
What is the fallacy of composition?
What is the fallacy of composition?
A government raises taxes after an economic boom and claims credit for the subsequent sustained growth. This reasoning probably demonstrates:
A government raises taxes after an economic boom and claims credit for the subsequent sustained growth. This reasoning probably demonstrates:
Claiming a stock market crash caused a depression is an example of what?
Claiming a stock market crash caused a depression is an example of what?
What does a production possibilities curve illustrate?
What does a production possibilities curve illustrate?
The law of increasing relative cost suggests that as more of a product is made:
The law of increasing relative cost suggests that as more of a product is made:
When economists say the resources are not efficiently used, this is likely to mean:
When economists say the resources are not efficiently used, this is likely to mean:
What happens when all productive resources are increased simultaneously?
What happens when all productive resources are increased simultaneously?
What are tangible resources?
What are tangible resources?
What is the result of accurate and timely information?
What is the result of accurate and timely information?
What is the main economic indicator nations use?
What is the main economic indicator nations use?
What is the goal of the economic indicator?
What is the goal of the economic indicator?
What is a key characteristic of a traditional economy?
What is a key characteristic of a traditional economy?
In which economic system does the central authority make all decisions?
In which economic system does the central authority make all decisions?
Consumer demand drives production decisions in which economic system?
Consumer demand drives production decisions in which economic system?
What are the main elements of a market economy?
What are the main elements of a market economy?
The combination of different economies can be called?
The combination of different economies can be called?
Economic and political decision making are often intertwined, giving rise to frameworks classified as?
Economic and political decision making are often intertwined, giving rise to frameworks classified as?
What is the common goal of communism?
What is the common goal of communism?
What are the principles of a democratic socialism?
What are the principles of a democratic socialism?
Economic goals used to promote a better economy are?
Economic goals used to promote a better economy are?
To promote jobs, interest rates are decreased. This causes what?
To promote jobs, interest rates are decreased. This causes what?
High international trade has lead to what annual average?
High international trade has lead to what annual average?
What group did Adam Smith say helps each other to build the Economy?
What group did Adam Smith say helps each other to build the Economy?
How are production and food related, according to Malthus?
How are production and food related, according to Malthus?
As more food is collected, what action is needed to occur?
As more food is collected, what action is needed to occur?
What do you call a group of rich people who get value on low worth labour?
What do you call a group of rich people who get value on low worth labour?
Before government aid can you what must happen?
Before government aid can you what must happen?
What is key to keep the economy on track?
What is key to keep the economy on track?
Flashcards
Economics
Economics
The social science of scarcity and choice; allocating scarce resources wisely to satisfy wants while minimizing resource use.
Opportunity Cost
Opportunity Cost
The total that is lost from taking one course of action over another.
Economic Model
Economic Model
A simplified representation used to explain complex patterns and support economic predictions.
Analytical (positive)
Analytical (positive)
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Normative Economics
Normative Economics
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Fallacy
Fallacy
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Fallacy of Composition
Fallacy of Composition
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Post Hoc Fallacy
Post Hoc Fallacy
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Fallacy of Single Causation
Fallacy of Single Causation
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Production Possibilities Curve
Production Possibilities Curve
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Law of Diminishing Returns
Law of Diminishing Returns
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Law of Increasing Returns to Scale
Law of Increasing Returns to Scale
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Market economy
Market economy
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Productive Resources
Productive Resources
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Land
Land
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Labour
Labour
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Capital
Capital
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Tangible Resources
Tangible Resources
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Intangible
Intangible
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Economic System
Economic System
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Traditional Economy
Traditional Economy
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Command Economy
Command Economy
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Market Economy
Market Economy
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Fascism
Fascism
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Mixed economy
Mixed economy
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Dictatorship
Dictatorship
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Democracy
Democracy
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Communism
Communism
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Socialism
Socialism
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Capitalism
Capitalism
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Complementary goal
Complementary goal
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Conflicting goal
Conflicting goal
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Political Stability
Political Stability
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Reduced Public Debt
Reduced Public Debt
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Economic Growth
Economic Growth
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Increased Productivity
Increased Productivity
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Equitable Distribution
Equitable Distribution
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Price Stability
Price Stability
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Full Employment.
Full Employment.
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Viable Balance
Viable Balance
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Economic Freedom
Economic Freedom
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Study Notes
Economics Now: Analyzing Current Issues
Analyzing Current Issues
- This economics textbook analyzes current global and Canadian economic issues.
- It covers micro and macro-economics, finance, and trade.
- The textbook also presents different economic philosophies.
- The authors are Angelo Bolotta, Charles Hawkes, Rick Mahoney, and John Piper.
- It is an Oxford University Press publication.
Chapter 1: Basic Principles of Economics
- Economics: the social science of scarcity and choice.
- Resources are limited and must be used wisely.
- Making economic decisions, involves weighing needs, wants, and affordability.
- Scarcity dictates choices due to virtually unlimited needs/wants versus limited resources.
- "Wise use" furthers personal or group goals while minimizing resource consumption.
- The economic dilemma is the constant exceeding of wants over the ability to satisfy them.
- Economics (oikonomia) originally dealt with wise household management in ancient Greece.
- Economics is "the science of scarcity and choice".
- Decisions should maximize material wants satisfaction. at the lowest resource usage.
- Economics studies choices about scarce resources use.
- This makes it social science along with history, geography, sociology, and anthropology.
- Human behaviour/values complicate social science studies
- Physic laws are universal, but human economic theory evolves with society.
- Economists may disagree due to theory refinements, changing social conditions/political systems
- Rationality: Behaviour is influenced by shared values and beliefs.
- Predictability: Group tendencies are more predictable, unlike individual behavior.
- Economics can help with understanding and preparation for an economics-related career.
Key Features of the Book
- Chapter Openers pose questions related to the chapter's cartoon, photo, or game.
- Chapter Goals reveal learning outcomes.
- Features: Skill Builder: Thinking Like An Economist, Chapter Summaries, Key Terms lists
- End-of-chapter Activities are divided into Thinking/Inquiry, Communication, and Application sections.
- Case Studies presents real-world applications of topics.
- Check Your Understanding questions allow for review
- Economics in the News show real-world examples and A Matter of Opinion asks for personal stances.
- Primary Source contain original material from individuals and organizations discussed.
- Glossary reinforces the key terms.
Analytical Economics
- Analytical economics focuses on facts and observations.
- Uses descriptive statements portrays present/past conditions that can be verified statistically.
- Uses conditional statements which forecasts with the form "If x occurs then y will follow."
- Accuracy of that forecast can be observed.
Normative Economics
- Deals with value judgements and what should be.
- Normative statements are opinions, not verifiable facts.
- Example includes Government and institutional policy statements.
- Need facts/values for wise economic decisions in a global economy.
- Local decisions have far-reaching, including international trade and relations.
The Scientific Method in Economics
- Investigation which economists uses.
- 4 Components: observation, data collection, explanation, and verification.
Common Economic Fallacies
- A fallacy is a false proven hypothesis that many wrongly accept.
- Fallacy of Composition include things true for one, is automatically true for all.
- Loggers wanting to harvest and environmentalists protect resources at the same time
- Post Hoc Fallacy: Latin for "after this therefore because of this" assumes one event causes another merely by preceding it.
- Fallacy of Single Causation: Premise based on a single factor that causes an even to occur over others.
Production Possibilities and Scarcity
- Economics uses this graph to show limits due to scarcity. People living in a given economy must make producti
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Description
An overview of basic economic principles, scarcity, and decision-making. This chapter analyzes how limited resources impact choices. It also includes the definition of economics.
