Economics as a Social Science

These flashcards cover key concepts and terms in economics as presented in the lecture notes.

Scarcity

The condition that arises because the available resources are insufficient to satisfy wants.

Microeconomics

The study of the choices that individuals and businesses make, the way these choices interact, and the influence that governments exert on these choices.

Macroeconomics

The study of the aggregate effects on the national economy and the global economy of the choices that individuals, businesses, and governments make.

Opportunity cost

The highest-valued alternative forgone; the benefit you give up because you choose to take action in favor of another option.

Factors of Production

The resources needed for the creation of goods and services, typically including land, labor, capital, and entrepreneurship.

Elasticity

The measure of how much buyers and sellers respond to changes in market conditions.

Demand

Consumer willingness and ability to purchase goods and services at various prices.

Supply

The total amount of a good or service available for purchase at various prices.

Economic Incentive

A reward or penalty—such as a price decrease or taxes—that encourages or discourages action.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Cost-Benefit Analysis

A process of comparing the costs and benefits of a decision, such as whether to undertake a particular project or activity.