ECONOMICS

decisions

economics

social science related to the examination of human behavior and practices to efficiently use the scarce resources to supply the unlimited needs of man and achieve man’s satisfaction. A study that deals with how people decide to use the limited resources to satisfy their unlimited needs and wants

oikos and nomos

“house” and “household management”

MERCANTILIST

Gathering of wealth like gold, silver and land

ECONOMISTS

Father of Modern Economics

limited resources and unlimited needs and wants

The two opposing forces in the concept of economics

scarcity

A natural phenomenon that limits the production of goods and services

MACROECONOMICS

The division of economics that deals with the study of the totality of the economy

Concepts:

Economic sectors

Employment

Inflation

National income

Development

MICROECONOMICS

Economic decisions of small units of the economy

Concepts:

Opportunity cost

Demand

Supply

Market

Business organizations

individual choice

Decisions made by people acting separately from one another

social choice

Decisions made by the government to satisfy the needs of the society

trade-off

alternatives given up in choosing a particular use of a resource

opportunity cost

the next best alternative or the benefit you are giving up when you make a choice. It can also be viewed as the outcome of a trade-off.

High opportunity cost

Less benefits

More setbacks

Low opportunity cost

More benefits

Less setbacks

free goods

Air, water and sunlight is an example of ___ goods

economic goods

Goods that have value and price