Podcast
Questions and Answers
A social science that studies the production distribution and consumption of goods and services
A social science that studies the production distribution and consumption of goods and services
Economics
Economics comes from the greek word ______ that translates to "household management"
Economics comes from the greek word ______ that translates to "household management"
It deals with the behavior of the economy as a whole
It deals with the behavior of the economy as a whole
Macroeconomics
Deals with the behavior of individual components as an economic agent.
Deals with the behavior of individual components as an economic agent.
Signup and view all the answers
Consumer's desire
Consumer's desire
Signup and view all the answers
Given quantity of a good or service consumer would choose to buy at a particular price
Given quantity of a good or service consumer would choose to buy at a particular price
Signup and view all the answers
Consumer will switch to substitute other goods that can be used in its place
Consumer will switch to substitute other goods that can be used in its place
Signup and view all the answers
Price of goods rises and income remains the same
Price of goods rises and income remains the same
Signup and view all the answers
A tabular representation of goods
A tabular representation of goods
Signup and view all the answers
A graph showing the quantities of good that consumers would buy at a different prices
A graph showing the quantities of good that consumers would buy at a different prices
Signup and view all the answers
Number of products that a seller is willing and capable to provide to buyers
Number of products that a seller is willing and capable to provide to buyers
Signup and view all the answers
The negative or inverse relationship between price and quantity demanded
The negative or inverse relationship between price and quantity demanded
Signup and view all the answers
The positive and direct relationship between price and quantity supplied
The positive and direct relationship between price and quantity supplied
Signup and view all the answers
A given quantity of good or service seller would choose to sell at a particular price
A given quantity of good or service seller would choose to sell at a particular price
Signup and view all the answers
List of various quantities the seller would choose to sell at a various market prices.
List of various quantities the seller would choose to sell at a various market prices.
Signup and view all the answers
Graph that shows the relationship between the price of a product and the amount of a product supplied during a period of time
Graph that shows the relationship between the price of a product and the amount of a product supplied during a period of time
Signup and view all the answers
A situation in which the quantity demanded is greater than the quantity supplied
A situation in which the quantity demanded is greater than the quantity supplied
Signup and view all the answers
A situation in which the quantity supplied is greater than the quantity demanded
A situation in which the quantity supplied is greater than the quantity demanded
Signup and view all the answers
A situation in which two sides of the market balance each other
A situation in which two sides of the market balance each other
Signup and view all the answers
The price at which the quantity demanded equals the quantity supplied
The price at which the quantity demanded equals the quantity supplied
Signup and view all the answers
Quantity bought and sold at the equilibrium price
Quantity bought and sold at the equilibrium price
Signup and view all the answers
The process wherein a company/ country decides to focus their labor on a specific type of production
The process wherein a company/ country decides to focus their labor on a specific type of production
Signup and view all the answers
Economic concept that is used to refer to a party's production capability
Economic concept that is used to refer to a party's production capability
Signup and view all the answers
An economist ability to produce a particular good or services at a lower opportunity cost than its trading partners
An economist ability to produce a particular good or services at a lower opportunity cost than its trading partners
Signup and view all the answers
The situation where two or more parties depend upon each other for the exchange of goods and the fulfillment of their necessities
The situation where two or more parties depend upon each other for the exchange of goods and the fulfillment of their necessities
Signup and view all the answers
Externality occurs when a decision or action affects people who are not directly involved in the transaction of the leading to inefficiencies
Externality occurs when a decision or action affects people who are not directly involved in the transaction of the leading to inefficiencies
Signup and view all the answers
Importance is a concept that is fundamental in understanding how individuals firms and governments make choices and allocate resources
Importance is a concept that is fundamental in understanding how individuals firms and governments make choices and allocate resources
Signup and view all the answers
Inside the economies tool kit are not a collection of models sets of ideas and theories
Inside the economies tool kit are not a collection of models sets of ideas and theories
Signup and view all the answers
Economics is not a discipline that studies how individuals, businesses and governments make decision regarding the allocation of resources
Economics is not a discipline that studies how individuals, businesses and governments make decision regarding the allocation of resources
Signup and view all the answers
Abstraction in economics is the process of removing unnecessary details from the situation to focus on the essential elements that matter
Abstraction in economics is the process of removing unnecessary details from the situation to focus on the essential elements that matter
Signup and view all the answers
Abstraction won't allow us to create general ideas of what the problem is and how to solve it
Abstraction won't allow us to create general ideas of what the problem is and how to solve it
Signup and view all the answers
An economic theory is a set of ideas about the economy that has been organized in a logical framework
An economic theory is a set of ideas about the economy that has been organized in a logical framework
Signup and view all the answers
According to _____ an economic theory is a statement of relationship among economic variables
According to _____ an economic theory is a statement of relationship among economic variables
Signup and view all the answers
Economic models are mathematical or logical statement of economic theory
Economic models are mathematical or logical statement of economic theory
Signup and view all the answers
Visual models are pictures of an abstract economy graphs with curves and lines that tell an economic story
Visual models are pictures of an abstract economy graphs with curves and lines that tell an economic story
Signup and view all the answers
Study Notes
Overview of Economics
- Economics studies the production, distribution, and consumption of goods and services.
- Originates from the Greek word “oikonomia,” meaning "household management."
- Analyzes behaviors at both the macroeconomic (whole economy) and microeconomic (individual components) levels.
Consumer Behavior
- Consumer's desire indicates the quantity of goods/services they prefer at specific prices.
- Substitution effect: as the price of goods increases while income remains constant, consumers tend to switch to substitute goods.
Market Dynamics
- Supply refers to the number of products a seller is willing and able to provide.
- Demand is influenced by a negative relationship between price and quantity demanded.
- Supply shows a positive relationship between price and quantity supplied.
- Equilibrium price is where quantity demanded equals quantity supplied, determining the price at which transaction occurs.
Pricing and Supply
- Demand table lists various quantities consumers would buy at different prices.
- Supply table outlines quantities sellers would sell at varying market prices.
- Surplus occurs when quantity supplied exceeds quantity demanded.
- Shortage arises when quantity demanded surpasses quantity supplied.
- Equilibrium is the state where supply equals demand.
Specialization and Economic Capability
- Specialization occurs when entities focus labor on specific production areas.
- Comparative advantage allows parties to produce goods/services at lower opportunity costs compared to others.
- Economic interdependence exists when parties rely on one another for goods exchange and fulfilling needs.
Externalities and Decision-Making
- An externality affects individuals not directly involved in transactions, resulting in potential inefficiencies.
- Understanding economics is crucial for decision-making in individuals, firms, and governments regarding resource allocation.
Economic Tools and Concepts
- The economy's toolkit includes models, ideas, and theories for analyzing economic behavior.
- Abstraction in economics involves simplifying complex situations to focus on key elements.
- Economic theories systematically organize ideas about relationships among economic variables.
Models in Economics
- Economic models represent theoretical concepts mathematically or logically.
- Visual models depict abstract economic concepts through graphs and curves to communicate economic narratives.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Reviewer for exam
