MICROECONOMICS

Economics

A social science that studies how individuals, households, businesses, and governments allocate resources to satisfy needs and wants.

Oikonomia

The Greek origin of the term "economics," originally referring to the management of a household or state.

Microeconomics

The branch of economics that focuses on small, detailed aspects of the economy, such as individual and household decision-making.

Macroeconomics

The branch of economics that examines the economy as a whole, dealing with national-level issues like inflation and unemployment.

Scarcity

The fundamental economic problem where human wants exceed limited resources, necessitating choices about resource allocation.

Factors of Production

The resources used to produce goods and services, including land, labor, capital, and entrepreneurship.

Production

The process of creating goods and services using the factors of production.

Distribution

The allocation of income generated from production among different factors, such as wages and rent.

Exchange

The buying and selling of goods and services, which determines their price and value.

Consumption

The final use of goods and services by consumers.

Goods

Tangible products like food, clothing, and cars.

Consumer Goods

Goods that satisfy immediate needs or wants.

Capital Goods

Goods used to produce other goods, such as machinery.

Luxury Goods

Non-essential items that provide comfort or status.

Essential Goods

Necessary items for basic survival, such as food and shelter.

Services

Intangible products like education, healthcare, and entertainment.

Economic Activities

The various processes involved in the production, distribution, exchange, and consumption of goods and services.

Psychology

A social science that studies human behavior, compared to economics.

Sociology

A social science that focuses on human societies and their functions, related to economics.

Political Science

A field that examines governance and political structures, relevant to economic policies.