Economics 1: Core Concepts and Principles

Vocabulary flashcards defining fundamental economic concepts, types of resources, needs vs. wants, scarcity, and key economic figures based on the lecture material.

Economics

A social science that looks at how people can manage limited resources in order to satisfy unlimited needs.

Economist

A person who studies and develops economic theories and looks for solutions to the problems of scarcity.

Four Basic Human Needs

The essential necessities for human survival: food, shelter, clothing, and medicine.

Fifth Basic Human Need

Under globalisation, a mobile phone has become considered as the fifth basic human need.

Adam Smith

Known as the father of modern economics, who introduced concepts of mainstream economics and laissez-faire principles.

Laissez-faire Economics

An economic theory stating that economic development depends on private companies operating without government intervention, driven by self-interest, demand, and supply.

Price Mechanism

An economic system mechanism, also called an 'invisible hand', where prices are controlled by the interaction of demand and supply in a market economy.

Supsart

The first Thai book about economics, written by Praya Suriyanuwatra in 1911 during the reign of King Rama VI.

Praya Suriyanuwatra

The author who wrote 'Supsart' in 1911, marking the introduction of modern economics concepts in Thailand.

Economic Resources

Things necessary to meet human needs, categorized into human resources, natural resources, and man-made resources.

Human Resources

A type of economic resource where humans are employed or utilized to assist in meeting production and business needs.

Natural Resources

Essential resources derived directly or indirectly from nature (such as water, plants, or wood) used to fulfill human needs.

Man-made Resources

Resources invented by humans, such as computers, to respond to evolving human needs in many different ways.

Scarcity

The central economic problem faced by humans caused by having limited resources paired with unlimited human needs and wants.

Opportunity Cost

The loss or cost resulting from making a choice between alternative options when managing scarce resources.

Needs vs. Wants

Needs are essential requirements for survival (food, water, shelter, medicine), whereas wants are unlimited desires for additional satisfaction (vacations, luxury cars, jewelry).

Maximum Benefits

For economists, the measurement of how much human wants are satisfied using natural or man-made resources.

Core Concept of Economics

The foundational concept demonstrating how limited resources and unlimited needs lead to scarcity, forcing choices that result in opportunity costs.

Mainstream Economics

An economic model stemming from Adam Smith where private companies play an important role, the system is run by a price mechanism, and free trade areas exist.