Economics Overview: Individual Choices and Issues

Economics is the study of how people choose to use limited resources to satisfy their unlimited wants.

Economics studies decisions made by individuals, families, businesses, governments, and international organizations.

Economics examines how choices impact the economy at different levels, from local to global.

People must decide how to use limited resources like time, money, and natural resources.

Economics explores how people's behavior, like choices and decisions, influences economic outcomes.

Economics investigates how people decide whether to follow rules or bend them, like during a pandemic.

Economics studies the interaction between individuals and the economy, like how individual choices affect markets.

Economics analyzes a wide array of issues, from everyday decisions to global challenges.

The study of how people make decisions when faced with scarcity, focusing on choices, resources, and how they interact.

A system that deals with production, distribution, and consumption of goods and services.

The situation where there are limited resources to fulfill unlimited wants.

The study of how individuals and households make decisions regarding spending and saving.

The study of the economy as a whole, encompassing issues like unemployment, inflation and economic growth.

The ability to produce goods and services more efficiently than others.

The relationship between the price of a good or service and the amount that consumers are willing to buy.

The relationship between the price of a good or service and the amount that producers are willing to supply.

The fundamental problem of economics is scarcity, where unlimited human wants clash with limited resources. This means that we can't fulfill all our desires because there aren't enough resources to go around.

Capital refers to resources that have been previously produced and are used to create more goods and services. They are instrumental for economic activity.

Resources that are naturally occurring, such as land or mineral deposits, are considered natural resources. These resources are essential for production but are often limited in supply.

To address economic scarcity, society must find ways to match demand with supply. This means ensuring that total spending in the economy aligns with the overall production of goods and services.

Unlimited wants refer to the insatiable desires of individuals for goods and services. These desires are constantly evolving and are influenced by income levels and individual preferences.

The overall demand in an economy is called aggregate demand. It represents the total spending on goods and services by all individuals, businesses, and governments.

The total production of goods and services in an economy is known as aggregate supply. It represents the total amount of goods and services that businesses and households are willing to produce and sell.

In balancing demand and supply, the economy aims for a state of equilibrium. This occurs when the total spending (aggregate demand) matches the total production (aggregate supply), ensuring a stable economic environment.

A period of significant decline in economic activity, usually marked by a decrease in production, employment, and consumer spending.

The length of time and the severity of the decline in economic activity that defines a recession.

The use of resources in a way that maximizes output and minimizes waste.

The increase in a nation's overall production of goods and services over time.

Actions taken by governments to influence the level of economic activity.

Government policies aimed at influencing the total amount of spending in the economy.

A measure of the total value of all goods and services produced in an economy.

The idea that our needs and wants are unlimited, but the resources available to satisfy them are limited.

The branch of economics that studies the behavior of individual consumers and firms, making decisions about how to allocate resources.

The branch of economics that studies the economy as a whole, including factors like inflation and unemployment.

The distribution of resources, whether between different individuals, regions, or countries.

People make different choices based on their circumstances and needs, even when facing similar scarcity.

The difference between the value of a country's exports and imports, plus net income from abroad.

A trade balance is the difference between the value of a country's exports and imports of goods and services.

The branch of economics that deals with how resources are allocated, distributed and consumed in an economy.