Introduction to Economics ED0101 Topic 1

Scarcity = Condition where wants exceed resources Positive Science = Study of facts without suggestions Universal Laws = Applicable in every condition worldwide Scientific Laws = Establish relationship between causes and effects

Alfred Marshall = Study of mankind in ordinary life Curtis and Diane Eaton = Allocation of scarce resources Parkin = Behavior of individuals in consumption Robbins = Economic as a positive science

Consumption = Using goods and services Production = Creating goods and services Exchange = Trade of goods and services Corruption = Illicit gain during economic activities

<p>Law of Demand = Relationship between price and demand Law of Supply = Relationship between price and supply Inflation = Rise in general price levels Black Marketing = Illegal trade practices</p> Signup and view all the answers

<p>Economic Choices = Decisions made by individuals and governments Resource Allocation = Distribution of limited resources Behavior Study = Analysis of actions in economic contexts Scarcity Effect = Influence of limited resources on decisions</p> Signup and view all the answers

<p>Systematic Study = Interdependent facts studied Validation of Laws = Real events and predictions tested Wealth Relationship = Connection between wealth and activities Social Science = Study of societal economic interactions</p> Signup and view all the answers

<p>Limited Resources = Choosing between jeans or shoes Demand Changes = Price fluctuations affecting buying decisions Welfare Spending = Government budget allocations Employment Decisions = Business hiring processes</p> Signup and view all the answers

<p>Scarcity Principle = Importance of making choices Choice Theory = Decision-making in resource use Production Theory = Creation of goods and services Distribution Theory = How goods and services are spread</p> Signup and view all the answers

<p>Economics = The study of how individuals and societies make decisions about scarce resources Microeconomics = The branch of economics that studies individual consumers and firms Macroeconomics = The branch of economics that focuses on aggregate economic phenomena Scarcity = The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources</p> Signup and view all the answers

<p>Buying groceries = Individual decision making Government budget allocation = Public sector decision making Choosing between college and work = Opportunity cost Investing in stocks = Risk and return analysis</p> Signup and view all the answers

<p>Market Economy = Decisions made by individuals and firms Planned Economy = Decisions made primarily by the government Mixed Economy = Combines elements of both market and planned economies Traditional Economy = Based on customs and traditions</p> Signup and view all the answers

<p>Trade-Off = Choosing one option over another Opportunity Cost = The next best alternative foregone when a decision is made Supply and Demand = The relationship between the availability of goods and consumers' desire Economic Policies = Strategies implemented by the government to influence the economy</p> Signup and view all the answers

<p>Scarcity = Limited resources like water during a drought Demand = Increase in consumer interest for a new gadget Supply = An abundance of agricultural produce after a good harvest Market Equilibrium = The point where quantity demanded equals quantity supplied</p> Signup and view all the answers

<p>Define Economics = Explain the basic principles and scope of economics Evaluate Central Economic Problems = Assess and discuss key challenges in resource allocation Demonstrate Economic Relationships = Use graphs to illustrate economic concepts Understand Economic Systems = Analyze how different economies address scarcity issues</p> Signup and view all the answers

<p>Microeconomics = Consumer behavior and firm production Macroeconomics = National income and economic growth Behavioral Economics = Psychological factors affecting economic decisions Development Economics = Economic growth in developing countries</p> Signup and view all the answers

<p>Land = Natural resources used in production Labor = Human effort and skills used in production Capital = Tools and machinery used in production Entrepreneurship = The ability to combine resources effectively to create value</p> Signup and view all the answers