Introduction to Economics

These flashcards cover key economic concepts, principles, and terms essential for understanding the foundational aspects of economics.

Economics

The study of the distribution of scarce resources that have alternative uses.

Scarcity

A condition where something is both wanted and its quantity is limited.

Opportunity Cost

The value of the best alternative that we forgo when we make a choice or decision.

Economic Models

Simplified representations of reality used to predict economic outcomes.

Positivism

The use of models and theories to derive testable hypotheses that make useful predictions.

Marginalism

The evaluation of costs and benefits from a single action, focusing on present and future.

Efficiency

Producing what we want at the least possible opportunity cost.

Microeconomics

The part of economics that studies individual agents like consumers and firms.

Macroeconomics

The study of the economy as a whole, focusing on aggregates like GDP and employment.

Ceteris Paribus

A Latin phrase meaning 'with other conditions remaining the same'.

Capitalism

An economic system characterized by private ownership of capital and market-driven prices.

Socialism

An economic system with public ownership of production and distribution means.

Command Economy

An economy where prices and production are determined by the state.

Flow Variable

A measure of economic activity over a specific period.

Stock Variable

A measure of something at a specific point in time.

Disinterestedness

The principle of conducting analysis objectively without personal bias.

Replicability

The necessity for data and results to be repeatable for validation.