Podcast
Questions and Answers
Economics was initially known as what, due to its focus on politically relevant economic questions?
Economics was initially known as what, due to its focus on politically relevant economic questions?
- Behavioral Economics
- Descriptive Economics
- Social Economics
- Political Economy (correct)
Economics is a social science that studies how societies manage their unlimited resources.
Economics is a social science that studies how societies manage their unlimited resources.
False (B)
What broad subject is concerned with the study of human beings and their relationship with society?
What broad subject is concerned with the study of human beings and their relationship with society?
Social Science
Economics deals with activities of man such as consumption, production, ______, and exchange of goods and services.
Economics deals with activities of man such as consumption, production, ______, and exchange of goods and services.
Match the following branches of social science with their focus:
Match the following branches of social science with their focus:
Which social science relies on historical records for conducting economic analysis?
Which social science relies on historical records for conducting economic analysis?
According to Alfred Marshall, economic science is purely theoretical and has no connection to common sense.
According to Alfred Marshall, economic science is purely theoretical and has no connection to common sense.
What is the first step economists use in dealing with economic phenomena using the scientific approach?
What is the first step economists use in dealing with economic phenomena using the scientific approach?
After data analysis in economics, a ______ is formed and becomes an economic model representing economic realities.
After data analysis in economics, a ______ is formed and becomes an economic model representing economic realities.
Which of the following is the focus of consumption theory?
Which of the following is the focus of consumption theory?
Scarcity in economics refers to the condition where resources are unlimited relative to society's wants.
Scarcity in economics refers to the condition where resources are unlimited relative to society's wants.
What is the most important consideration in the study of economics?
What is the most important consideration in the study of economics?
Goods that are available in limitless supply and can be had for free are called ______ goods.
Goods that are available in limitless supply and can be had for free are called ______ goods.
What term describes resources that command a price in the market because they are not free?
What term describes resources that command a price in the market because they are not free?
Economics primarily tries to analyze how individuals and societies can eliminate scarcity entirely.
Economics primarily tries to analyze how individuals and societies can eliminate scarcity entirely.
According to the content, what goal should be emphasized to avoid wasting scarce resources?
According to the content, what goal should be emphasized to avoid wasting scarce resources?
[Blank] refers to the ability to select which good, service, or recourse to purchase or provide from a range of possible options.
[Blank] refers to the ability to select which good, service, or recourse to purchase or provide from a range of possible options.
What does 'opportunity cost' measure in the context of making economic choices?
What does 'opportunity cost' measure in the context of making economic choices?
Opportunity cost arises even when there is an abundance of resources.
Opportunity cost arises even when there is an abundance of resources.
Define the economic term that measures what is given up when one alternative over another.
Define the economic term that measures what is given up when one alternative over another.
Every society must decide which ______ and services to produce from its limited resources.
Every society must decide which ______ and services to produce from its limited resources.
In economics, what fundamental question involves prioritizing which needs and wants a society will satisfy first?
In economics, what fundamental question involves prioritizing which needs and wants a society will satisfy first?
Deciding 'what to produce' involves determining the technique of producing goods.
Deciding 'what to produce' involves determining the technique of producing goods.
After deciding what to produce, what is the next concern?
After deciding what to produce, what is the next concern?
The choice of a production method is determined by the relative costs of inputs, which reflects their ______.
The choice of a production method is determined by the relative costs of inputs, which reflects their ______.
What is the primary determinant of the choice of production method in an economic society?
What is the primary determinant of the choice of production method in an economic society?
The decision of 'how to produce' is independent of the availability and cost of resources.
The decision of 'how to produce' is independent of the availability and cost of resources.
What aspect is determined by the way a society distributes its output or income?
What aspect is determined by the way a society distributes its output or income?
An economic system is also determining how the total ______ or income will be distributed among the population.
An economic system is also determining how the total ______ or income will be distributed among the population.
In many economies, what largely determines the amount of goods and services an individual can consume?
In many economies, what largely determines the amount of goods and services an individual can consume?
Flashcards
Economics as a Social Science
Economics as a Social Science
Economics is a social science that examines how people choose among available alternatives.
Social Science
Social Science
A branch of knowledge that deals with human beings and their relationship with society.
Economics Focus
Economics Focus
Economic activities include consumption, production, distribution, and exchange of goods and services.
Economics Methods
Economics Methods
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Scarcity
Scarcity
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Free Goods
Free Goods
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Economic Goods
Economic Goods
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Choice
Choice
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Opportunity Cost
Opportunity Cost
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What to Produce?
What to Produce?
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How to Produce?
How to Produce?
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For Whom to Produce?
For Whom to Produce?
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Study Notes
- SSE 203 Microeconomics is designed to help students analyze the market, production, consumption, exchange, supply and demand, consumer behavior, and basic economic theories.
Course Outcomes
- At the end of the course Students should be able to;
- Demonstrate an understanding of consumer behavior theories, basic economic theories, and the history of economics.
- Show knowledge of the market system and means of production
- Apply critical and creative thinking by surveying small-scale businesses/entrepreneurs about challenges
Learning Objective
- Define economics and explain it as a social science
Economics as a Social Science
- Initially referred to as "political economy," economics addressed politically significant economic issues
- Economics is a social science that studies people's choices among available alternatives and has evolved over centuries
Social Science
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Social science is a knowledge branch concerning individuals and their societal relationships, encompassing social, political, economic, and cultural aspects
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It includes history, psychology, economics, political science, and sociology
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Economics focuses on production, distribution, and exchange of goods and services
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Political science involves government principles and organizations, which significantly affect human economic activity
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Government policies and programs influence consumption, investments, and international trade
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Historical records are essential for economic analysis
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Economists should understand history to grasp economic phenomena
Methods of Economics
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Alfred Marshall stated that economic science uses common sense, organized analysis, and reasoning to collect and interpret facts
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Economics uses a scientific approach to address economic phenomena.
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Problems are identified through observation, leading to a proposition with possible solutions.
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Data is gathered via interviews, questionnaires, and public/private sources
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Data is organized into records, manuscripts, graphs, or math equations to form economic models
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Consumption theory is an example, representing consumer patterns and answering questions like what, where, and how much to buy
Scarcity
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Economic scarcity exists because there is a limited about of resources relative to society's wants or desires
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Nowhere provides enough goods to satisfy everyone's desires completely
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Scarcity is a key concept in economics; without it, there is less need to economize consumption
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Economics would lose importance if goods were limitless
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When goods are free and abundant (like desert sand, beach water, sunlight, and air), they are called free goods
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Resources that are scarce command a price and are known as economic goods
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Economics analyzes how people deal with scarcity using limited resources
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Economics studies how individuals and nations address scarcity
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It focuses on using limited resources to satisfy unlimited wants
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Efficiency in production is essential to avoid wasting scarce resources
Choice
- Choice is defined as the ability of a consumer or producer to purchase or provide from available options
- The freedom to choose is considered a basic indicator of economic well-being and development
Opportunity Cost
- Opportunity cost: The value of what is given up when choosing one alternative over another
- It occurs because scarcity means that selecting one option requires sacrificing something else
- It is the value of the goods given up
Basic Economic Problems
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Every society must decide what goods and services to produce with limited resources
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Prioritizing needs and wants is essential, addressing what and how much to produce
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Determining production techniques is vital after deciding the quantity and quality of goods.
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This involves deciding who produces goods (robots or people), which resources to use, and how to allocate tasks
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An economic society can choose labor-intensive or capital-intensive production methods.
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The production choice depends costs reflecting their scarcities
For Whom to Produce?
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Distributing the total output or income is a key decision in any society
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This involves deciding who benefits from production and whether distribution is fair and equal
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The amount of goods and services an individual can consume often depends on their income
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Income is generally based on effort
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