BM2205 Fundamental Concepts of Microeconomics: Definition of Economics

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What is the definition of Economics?

The study of human decisions and activities in the face of scarce resources

What are the two attributes of the economy mentioned in the text?

Infinite wants and limited resources

What is scarcity according to the text?

Gap between limitless wants and limited resources

What are included in the resources necessary to produce goods and services mentioned in the text?

Land, labor, capital, natural resources, and entrepreneurial skills

What does Economics provide information about, as mentioned in the text?

Systems and frameworks for analyzing societal interactions

How can economics help poultry farmers, as mentioned in the text?

Recognize which animals to breed

What is the focus of microeconomics?

Individual agents in the economy

Which department would be most interested in measuring the production performance in agriculture of the country?

Department of Agriculture

What is another name for macroeconomics?

Income theory

Which area of economics involves determining what price farmers would sell their crops?

Microeconomics

What does the government's role involve in microeconomics?

Protecting society’s welfare and providing a public good

Which type of economic activity has direct effects on macroeconomic results?

Producer behavior

How are microeconomics and macroeconomics interrelated?

Microeconomic activities have direct effects on macroeconomic results

What would a wrong decision made at the macroeconomic level negatively affect?

Individual agents in the economy

What is one example of how a positive outcome at the microeconomic level may adversely affect the macroeconomic environment?

Wage hike resulting in reduced production performance

What does macroeconomics focus on?

National income of an economy

Explore the fundamental concept of economics as a social science that analyzes human decisions and activities in the context of limited resources. Understand the systematic structure and knowledge based on evidence and observation, and the attributes of a nation's economy related to production, consumption, and trade of goods and services.

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