What Is Economics?

These flashcards cover essential concepts from the lecture on economics, including definitions, theories, and examples related to agricultural economics and general economic principles.

Economics

A social science that studies how individuals, firms, and societies allocate scarce resources to satisfy their unlimited wants and needs.

Scarcity

The limited nature of society's resources, given society's unlimited wants and needs.

Utility

The satisfaction or pleasure that a consumer derives from consuming a good or service.

Preferences

The subjective tastes or preferences of consumers that determine their choices between different goods and services.

Economic Rationality

The assumption that individuals make decisions based on maximizing their utility.

Utility Function

A mathematical representation of a consumer's preferences, showing the relationship between the quantity of goods consumed and the level of satisfaction (utility) derived.

Paradox of Value

The apparent contradiction that some goods (like water) are fundamental but cheap, while other goods (like diamonds) are expensive yet not essential.

Agricultural Economics

A subfield of economics that focuses on the production, distribution, and consumption of agricultural goods.

Meme Stocks

Stocks that have gained a following on social media, often subject to high volatility and speculative trading.

Transitivity

An assumption in consumer choice theory that if a person prefers option A to option B and option B to option C, then they should prefer option A to option C.

Input Suppliers

Entities that provide the necessary resources (like seeds and fertilizers) required for agricultural production.

Wholesalers

Businesses that purchase large quantities of goods from producers and sell them to retailers or other businesses.