Economic Theory - Introduction to Economics

Flashcards covering key vocabulary and concepts from the BCOM203 Economic Theory, Unit 1: Introduction to Economics lecture notes.

Economics

A social science that studies how individuals, businesses, governments, and societies allocate scarce resources to satisfy unlimited wants.

Oikonomikos

Managing of a household and the unlimited wants of the family members utilising the limited income earned by the head of the family

Wealth Definition of Economics

Economics is concerned with the nature and causes of the wealth of nations.

Welfare Definition of Economics

Economics is the study of mankind in the ordinary business of life.

Scarcity Definition of Economics

Economics studies human behaviour as a relationship between ends and scarce means which have alternative uses.

Growth Definition of Economics

Economics is the study of how man and society choose with or without the use of money to employ the scarce productive resources, which have alternative uses, to produce various commodities over time.

Demand Analysis and Forecasting

Accurate estimates of demand that guide management in maintaining market position and enlarging profits.

Cost and Production Analysis

Yields significant cost estimates useful for management decisions; discovering economic costs for effective profit planning, cost control, and pricing practices.

Pricing Decisions, Policies and Practices

Price is the genesis of a firm's revenue and depends on how correctly the pricing decisions are taken.

Profit Management

Long run profits earned which are taken as an important measure of the firm's success.

Capital Management

Planning and control of capital expenditure by top management.

Microeconomics

Studies individuals or business enterprises within a national economic system.

Macroeconomics

Studies the economy as a whole.

Deductive Method

Deriving new inference from basic assumptions established by other methods.

Inductive Method

Delves into economic inferences based on experiences and observations.

Positive economics

Branch of economics that refers to descriptive and quantification statements, and its common usage involves the analysis of theories.

Normative economics

It is based on ideologically ethical and value judgements.

Economic variables

Any measurement that helps to determine how an economy functions.

Equilibrium

A state in which opposing forces or influences are balanced.