Podcast
Questions and Answers
What do the Greek roots of the term 'economics' primarily refer to?
What do the Greek roots of the term 'economics' primarily refer to?
- Resource allocation
- Management of wealth
- State management
- Household management (correct)
Which of the following is considered the central economic problem in every society?
Which of the following is considered the central economic problem in every society?
- Inflation
- Scarcity (correct)
- Globalization
- Unemployment
What is the opportunity cost of making a choice?
What is the opportunity cost of making a choice?
- The time taken to make the decision
- The total cost involved in the choice
- The benefit gained from the choice made
- The value of the next best alternative given up (correct)
Which factor of production is associated with profit?
Which factor of production is associated with profit?
Which of the following best describes 'efficiency' in economics?
Which of the following best describes 'efficiency' in economics?
What are the four basic economic questions that societies must address?
What are the four basic economic questions that societies must address?
In the context of production, who are considered the consumers?
In the context of production, who are considered the consumers?
Which aspect of economics does 'equity' refer to?
Which aspect of economics does 'equity' refer to?
What does positive economics primarily focus on?
What does positive economics primarily focus on?
Who is known as the 'Father of Economics'?
Who is known as the 'Father of Economics'?
Which statement best defines normative economics?
Which statement best defines normative economics?
What does the term 'Ceteris Paribus' imply in economic analysis?
What does the term 'Ceteris Paribus' imply in economic analysis?
Which book by Adam Smith is considered a significant contribution to economic theory?
Which book by Adam Smith is considered a significant contribution to economic theory?
Microeconomics primarily examines which of the following?
Microeconomics primarily examines which of the following?
Which aspect does macroeconomics primarily focus on?
Which aspect does macroeconomics primarily focus on?
What concept did David Ricardo primarily contribute to economics?
What concept did David Ricardo primarily contribute to economics?
What major issue did John Maynard Keynes address in his influential book?
What major issue did John Maynard Keynes address in his influential book?
What defines a traditional economy?
What defines a traditional economy?
Which of the following is a key concept in microeconomics?
Which of the following is a key concept in microeconomics?
Which of the following would be an example of a normative economic statement?
Which of the following would be an example of a normative economic statement?
What is a characteristic feature of a command economy?
What is a characteristic feature of a command economy?
Which economist introduced the concept of 'marginalism'?
Which economist introduced the concept of 'marginalism'?
Which statement accurately describes a market economy?
Which statement accurately describes a market economy?
What is the primary relationship explored under the 'Ceteris Paribus' assumption?
What is the primary relationship explored under the 'Ceteris Paribus' assumption?
Which economist is known for developing a general economic system analysis?
Which economist is known for developing a general economic system analysis?
Which of the following best describes the focus of microeconomics?
Which of the following best describes the focus of microeconomics?
Which statement is true regarding socialism?
Which statement is true regarding socialism?
What was the major outcome of Karl Marx's work, Das Kapital?
What was the major outcome of Karl Marx's work, Das Kapital?
How is a mixed economy defined?
How is a mixed economy defined?
Which of the following economists emphasized the concept of the 'invisible hand'?
Which of the following economists emphasized the concept of the 'invisible hand'?
Which element is NOT studied in macroeconomics?
Which element is NOT studied in macroeconomics?
What role do external economic agents play in macroeconomics?
What role do external economic agents play in macroeconomics?
What does Keynes attribute to low levels of investment during a depression?
What does Keynes attribute to low levels of investment during a depression?
Which economic model is recognized for its analysis of the goods and money markets?
Which economic model is recognized for its analysis of the goods and money markets?
Which economist is associated with the monetarist view within the post-Keynesian framework?
Which economist is associated with the monetarist view within the post-Keynesian framework?
What is the significance of wage rate stickiness during a depression, according to Keynes?
What is the significance of wage rate stickiness during a depression, according to Keynes?
Which stream of thought focuses on the national expectations hypothesis?
Which stream of thought focuses on the national expectations hypothesis?
What was a notable outcome of the development of post-Keynesian economics in the 1940s and 1950s?
What was a notable outcome of the development of post-Keynesian economics in the 1940s and 1950s?
Which of the following economists is NOT typically associated with post-Keynesian economics?
Which of the following economists is NOT typically associated with post-Keynesian economics?
In the context of developing countries, what aspect of New Classical Economics is particularly emphasized?
In the context of developing countries, what aspect of New Classical Economics is particularly emphasized?
Study Notes
Origin of the Term "Economics"
- Derived from Greek roots: "oikos" (household) and "nomus" (management).
- Oikonomia indicates "management of household" initially, evolving to mean "state management" as Greek society grew into city-states.
Scarcity
- Central economic problem for all societies, defined as "limited resources in demand."
- Fundamental to the study of economics, driving the reality of economic choices.
Factors of Production
- Land: Reward is rent.
- Labor: Reward is salary/wages.
- Capital: Reward is interest.
- Entrepreneurship: Reward is profit.
Circular Flow Model
- Illustrates interactions between different economic agents and the flow of goods, services, and resources.
Opportunity Cost
- Represents the value of the next best alternative forgone when making choices.
- Affects both producers (goods not made) and consumers (options not chosen).
Basic Decision Problems
- Consumption: Managed by consumers.
- Production: Managed by producers.
- Distribution: Overseen by government.
- Growth Over Time: Involves society and global dynamics.
Four Basic Economic Questions
- What to produce?
- How to produce?
- How much to produce?
- For whom to produce?
3 Es in Economics
- Efficiency: Focus on productivity and resource allocation.
- Equity: Ensures justice and fairness in economic dealings.
- Effectiveness: Measures achievement of goals and objectives.
Positive vs. Normative Economics
- Positive Economics: Analyzes "what is" using objective methods.
- Normative Economics: Evaluates "what should be," encompassing ethics and welfare considerations, often linked to policy formulation.
Ceteris Paribus Assumption
- Means "all else being equal," used to analyze relationships between two variables while holding other factors constant.
Branches of Economics
- Microeconomics: Studies individual decisions and market interactions, focusing on firms and consumers.
- Macroeconomics: Analyzes broad economic aggregates like national income, spending patterns, and overall economic performance.
Types of Economic Systems
- Traditional Economy: Focus on subsistence and self-consumption.
- Command Economy: Production decisions dictated by the government.
- Market Economy: Resources owned privately, decisions made by individuals.
- Socialism: Key enterprises owned by the state, while some private ownership exists.
- Mixed Economy: Combines elements of market and command systems, like in the Philippines.
Important Economic Terms
- Wealth
- Consumption
- Production
- Exchange
- Distribution
Brief History of Economic Thought
- Classical Economics: Dominated by Adam Smith, David Ricardo, and Karl Marx, establishing foundational theories.
- Neoclassical Economics: Introduced concepts like market equilibrium and marginalism.
- Keynesian Economics: John Maynard Keynes focused on government intervention for unemployment and recession recovery.
- Non-Walrasian and Post-Keynesian Economics: Developed new macroeconomic models and regulatory frameworks.
- New Classical Economics: Emphasized adherence to expectations and new theories relevant to developing countries.
Discussion Questions
- Analyze how scarcity impacts the economic system within a specific country.
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Description
Explore the origins of the term 'economics' and its Greek roots. Learn how concepts like household management evolved into broader ideas of state management and address the basic economic issues, such as scarcity, that societies face. This quiz will help solidify your understanding of the foundational elements of economics.
