Economics: Part 1 - The Definition of Economics

What does the acronym “MONEY” stand for?

Momentarily Owned, Never Eternally Yours

What refers to the “Mechanism?”

Price

What is the “Heart of Economics?”

Scarcity

What Greek word the does the term “Economics” derive from?

Oikonomia or Oikonomos

What is the definition of the Greek Word “Oikonomia” or “Oikonomos?”

Household Management

What does the “Oikos” in the Greek word “Oikonomos” mean?

House

What does “nomos” in the Greek word “Oikonomos” mean?

Management

What does Economics mainly talk about?

It is about the management of resources within a family, country, community, and business.

Economics is a social science that deals with two extremes. What are these two extremes?

Limited Resources and Unlimited Wants

Give one example of a common Unlimited Want.

Luxuries

What do “Luxuries” refer to?

Exaggerated Needs

What are the “3 Basic Questions” that are important to consider in Economics?

What to produce?

How to produce?

For whom to produce?

Why is there a need to manage resources?

Due to Scarcity

Why do people have to pick which wants to satisfy?

Because people have limited resources.

What is the loss of possible gain when we choose an alternative over the other?

Opportunity Cost

Since [1]_______ exists, there is always an [2]_______ in every choice we make.

1) Scarcity
2) Opportunity Cost

What does the abbreviation “TANSTAAFL” stand for?

There Ain’t No Such Thing As A Free Lunch

Where is the concept of opportunity cost essential?

In the allocation of goods and services

What are Tangible commodities consumed and produced by an individual or groups of people?

Goods

In economics, what is the term used to refer to military goods?

Guns

In economics, what is the term used to refer to civilian goods?

Butter

What are Intangible commodities that are often in the form of action and require innate or required skills?

Services

Who is the “Father of Modern Economics?”

Adam Smith

What is the “Father of Modern Economics” known for?

Political Economy and Capitalism

During Smith’s time, he had a “rival” who advocated for the opposite of his views in economics. Who is this “rival?”

Karl Marx

Who is the “Father of Communism?”

Karl Marx

What is the “Father of Communism” known for?

Proposing that the means of production are collectively owned and controlled by the working class.

What type of social study eradicates the haves (wealthy) and have-nots (poor)?

Communism

Scarcity → [1]_______, Shortage → [2]_______

1) Kakapusan

2) Kakulangan

“Economics is an inquiry into the nature and causes of the wealth of nations.”

This Definition of Wealth was coined by?

Adam Smith

“Economics is a study of mankind in the ordinary business of life; it examines the part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well-being.”

This Definition of Wealth was coined by?

Alfred Marshall

“Economics is a science that studies human behavior as a relationship between ends and scarce means, which have alternative uses.”

This Definition of Scarcity was coined by?

Lionel Robbins

“Economics is the study of how people and society end up choosing with or without the use of money, to employ scarce productive resources that could have alternative uses. It produces various commodities over time. It distributes them for consumption, now or in the future, among various persons and groups in society. It analyses the costs and benefits of improving patterns of resource allocation.”

This Definition of Growth-Oriented was coined by?

Paul Samuelson

What are the Two Primary Branches of economics?

Microeconomics and Macroeconomics

What primary branch of economics deals with the economic problems of the individual, the firm, and the industry?

Microeconomics

What primary branch of economics focuses on the behavior of individual economic agents and how they make decisions about allocating scarce resources?

Microeconomics

What primary branch of economics dwells on the impact of supply and demand, investigates how the price for a product is determined, examines different market structures, and studies the factors that determine the prices and employment of productive resources?

Microeconomics

What primary branch of economics studies the overall performance and behavior of an economy as a whole?

Macroeconomics

What primary branch of economics tackles the Aggregate Effects that occur in the economy?

Macroeconomics

What refers to the total production, total employment, and general price level occurring in an economy?

Aggregate Effects

What primary branch of economics tackles the Employment and Unemployment rates of an economy?

Macroeconomics

What primary branch of economics tackles the Inflation and Deflation rates of an economy?

Macroeconomics

What primary branch of economics tackles the Economic Growth of an economy?

Macroeconomics

What is used to record or measure the Economic Growth of an economy?

GDP (Gross Domestic Product)

What primary branch of economics is concerned with the effects of Interest Rates and Taxes?

Macroeconomics

What are the Two Types of Economic Statements?

Positive and Normative Economics

What type of economic statement refers to the facts of an economy?

Positive Economics

What type of economic statement encompasses value and judgments, like ethical perceptions and norms of fairness?

Normative Economics

What type of economic statement aims to elaborate on how society makes decisions about economic activities such as production, distribution, consumption, spending, and trade?

Positive Economics

What type of economic statement focuses on looking at the lenses wherein objectivity, scientific explanation, logic, empirical, and factual are the primary considerations.

Positive Economics

What type of economic statement describes the mechanism of the economy?

Positive Economics

What type of economic statement focuses on value, judgment, and opinion?

Normative Economics