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Questions and Answers
What is the origin of the term 'Economics'?
When was Adam Smith's book 'An enquiry into the nature and causes of wealth of nations' published?
What does the term 'Oikonomia' mean?
Why do economists regard decision making as important?
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What is Economics?
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What is the implication of resource scarcity on the satisfaction of wants?
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According to Marshall, what is the feature of his definition of economics?
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Who defined economics as the science of wealth?
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What are 'means' according to Robbins?
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What is economics the study of?
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What is the definition of economics according to Alfred Marshall?
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Why are economic goods considered scarce resources?
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In which economy are all human wants satisfied?
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Which entities are limited by scarcity in every economic system?
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What is the nature of human wants?
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What is the definition of Economics according to Adam Smith?
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According to Robbins, what is the nature of 'means'?
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What is the implication of resource scarcity on the satisfaction of wants?
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What is the feature of Marshall's definition of Economics?
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Who defines Economics in terms of Dynamic Growth and Development?
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What is the meaning of the Greek word 'Oikonomia'?
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When did Adam Smith publish his book 'An enquiry into the nature and causes of wealth of nations'?
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What do economists consider as the reason for decision making being important?
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What is the definition of Economics?
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Why are resources considered scarce?
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What is the definition of scarcity in economics?
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Which economist is credited with defining economics as the study of mankind in the ordinary business of life?
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Which of the following is the most accurate definition of economic goods?
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Which of the following is not limited by scarcity in every economic system?
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Which of the following economies is without scarcity?
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Study Notes
Origin of Economics
- The term 'Economics' is derived from the Greek word 'Oikonomia'.
- 'Oikonomia' translates to "household management" or "the management of a household or state".
Key Publications
- Adam Smith published "An Inquiry into the Nature and Causes of the Wealth of Nations" in 1776.
Importance of Decision Making
- Economists emphasize decision making due to resource scarcity, which necessitates choices about allocating limited resources to satisfy unlimited wants.
Definition of Economics
- Economics is the study of how societies manage scarce resources to satisfy human wants.
- Alfred Marshall defined economics as the science that deals with the production, distribution, and consumption of goods and services.
Resource Scarcity
- Scarcity in economics implies that resources are limited relative to the wants they aim to satisfy, resulting in competition and prioritization.
- Economic goods are considered scarce because they cannot be produced in sufficient quantities to meet all human desires.
Features of Economic Definitions
- Marshall highlighted the focus on the balance between human wants and available resources in his definition.
- Robbins emphasized the nature of 'means' as resources that help fulfill wants, underscoring the necessity of making choices.
Economic Systems and Scarcity
- In every economic system, human wants are inherently unlimited while the means to satisfy them are not, creating a conflict.
- No economic system exists where all human wants are completely satisfied, as scarcity is a fundamental characteristic.
Nature of Human Wants
- Human wants are dynamic and can evolve, often expanding as basic needs are met, contributing to continual resource competition.
Dynamic Growth and Development
- Various economists define economics in terms of dynamic growth and development, addressing changing conditions in societies and economies.
Definitions by Key Economists
- Adam Smith defined economics in the context of wealth generation and its distribution among different sectors of society.
- For the study of mankind in everyday life, an economist associated with this definition is often Alfred Marshall.
Summary of Economic Goods
- Economic goods are those limited by scarcity, meaning they are not freely available and require resource allocation to obtain.
- Non-scarce goods are not limited by availability and can satisfy wants without restriction, such as air or sunlight.
Implications of Resource Scarcity
- The implication of resource scarcity forces individuals and societies to prioritize needs and make informed choices to manage resources effectively.
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Description
Test your knowledge of the origins and history of economics with this quiz! From the Greek word for household management to Adam Smith's groundbreaking publication, this quiz covers key moments and terms in the field of economics. Challenge yourself and see how much you know about the foundations of this important discipline.
