Economics and Economic Systems Lecture Review

Comprehensive practice flashcards reviewing key concepts, famous economists, core principles, sustainable development pillars, and economic vocabulary.

What is the definition of economics according to the lecture notes?

The decision-making of people regarding limited resources.

What is the Greek origin and meaning of the word 'Economics'?

It comes from the Greek word 'Oikonomos,' meaning manager of the household, which comes from 'Oikos' (house) and 'Nomos' (management).

What is Microeconomics?

A branch of economics focused on small units of society that analyzes the actions and behavior of small economic units, including concepts of demand, supply, and individual business.

What is Macroeconomics?

A branch of economics focused on the overall movement of the economy and society as a whole, analyzing metrics like national income and employment rate.

What is Positive Economics (positibong ekonomiks) and Descriptive Economics?

Positive Economics is the analysis of the economy based on actual events or data. Descriptive Economics is the gathering and description of that data.

What is Normative Economics (normatibong ekonomiks)?

An economic analysis that provides opinions, suggestions, or views on what ought to be done.

Who is known as the 'Ama ng Klasikong Ekonomiks' and what concept did he introduce?

Adam Smith; he introduced the concept of the 'Invisible Hand,' which states that free competition helps create a balanced market and supports economic development.

Who is considered the 'Ama ng Makabagong Makroekonomiks' and what is Keynesian Economics?

John Maynard Keynes; Keynesian Economics is a macroeconomic theory stating that aggregate demand drives the economy, requiring government intervention (Government Hand) during economic crises or high unemployment.

What is David Ricardo's Theory of Comparative Advantage?

A theory stating that a country benefits from international trade (free trade) by specializing in producing goods with a low opportunity cost.

What is Marxism and what works were authored by Karl Marx according to the notes?

Marxism is the foundation of understanding society based on class struggle; Karl Marx authored Das Kapital and The Community Manifesto.

What is Thomas Robert Malthus's Malthusian Theory of Population?

The idea stating that human population grows faster than the food supply.

What is Monetarism according to Milton Friedman?

An economic concept stating that excessive money creation causes high inflation due to an oversupply of money in circulation; Milton Friedman won the Nobel Prize in Economics in 1976.

What is Say's Law (Batas ng Merkado) introduced by Jean-Baptiste Say?

An economic theory stating that 'supply creates its own demand'.

What is Friedrich Hayek's Theory Business Cycle?

A theory stating that economic crises or depressions are caused by artificially lowering interest rates by lending banks.

What is Praxeology as defined by Ludwig Von Mises?

The study of human action and conduct.

What awards and economic models are associated with Amartya Sen?

He won the Nobel Prize in Economic Sciences, developed the Capability Approach (focusing on human freedom and dignity rather than purely monetary metrics), and introduced the Human Development Index.

What is a Tobin Tax according to James Tobin?

A small and equal tax imposed on currency exchange transactions.

What is Irving Fisher's Quantity Theory of Money?

A theory stating that when more money circulates in the economy, goods become more expensive.

What idea did Joan Robinson demonstrate in 'The Economics of Imperfect Competition'?

She showed that real markets rarely follow perfect competition.

What does Paul Krugman's New Trade Theory explain?

It explains why countries with similar wealth and products trade with each other.

What is a Trade-Off in economic decision-making?

A situation where one thing must be sacrificed in order to obtain another.

What is Opportunity Cost?

The value of what is sacrificed to carry out a decision.

What is Marginalism?

Decision-making based on additional benefit (dagdag na kapakinabangan).

What is an Incentive (Insentibo)?

Any reward or benefit that encourages a person to act and make decisions.

What is Sustainable Development?

Meeting the needs of the present without sacrificing future generations, developing society to ensure proper living standards and proper economic growth.

What are the Three Pillars of Sustainable Development (Tatlong Haligi ng Likas-Kayang Pag-unlad)?

1. Society (Lipunan - human well-being), 2. Environment (Kapaligiran - nature conservation), and 3. Economy (Ekonomiya - projects improving quality of life).

How are Urbanization and Industrialization defined?

Urbanization (Urbanisasyon) is the expansion of cities and towns due to population growth; Industrialization (Industriyalisasyon) is the widespread development of economic activities.

How do Efficiency (Kahusayan) and Equity (Pagiging Patas) differ?

Efficiency is using resources to create maximum benefit, whereas Equity is the fair distribution of benefits to help those in need.

What are White Elephant Projects?

Projects that are unfinished or not used properly.

What is a Sunk Cost?

Costs that have already been incurred and cannot be recovered or returned.

What is the difference between Shortage (Kakulangan) and Scarcity (Kakapusan)?

Shortage is a temporary or short-term lack of supply of a product that can be solved quickly; Scarcity is a long-term or permanent loss of resources.

What is the difference between Relative Scarcity and Absolute Scarcity?

Relative Scarcity (Relatibong Kakapusan) exists when natural resources exist but are insufficient to meet everyone's needs; Absolute Scarcity (Lubos na Kakapusan) refers to natural limitations of resources that cannot be easily supplied.