Introduction to Economics – Lecture Review

These flashcards cover fundamental definitions, key economic thinkers, core concepts of choice and scarcity, the scientific method, and the interdisciplinary nature of economics presented in the lecture notes.

What is the literal Greek origin of the word “Ekonomiks,” and what does it mean?

Oikonomia, meaning household management.

How does economics define itself as a social science?

It studies human actions, efforts, and ways of using scarce resources to satisfy unlimited needs and wants.

Who is referred to as an ‘economist’?

A person who studies economic movements, the choices and decisions of people and society, and their effects on the whole economy.

What are economic goods?

Items that have value or price, such as food, clothing, and houses.

What are free goods?

Items obtained without payment, like sunlight and air.

Why does the study of economics revolve around choice and decision-making?

Because unlimited needs and wants confront limited resources, forcing individuals and societies to choose.

How are an economy and a household similar?

Both plan how to divide tasks and allocate limited resources among many needs and wants.

Which ancient thinker wrote ‘Oeconomicus’ and stressed good governance?

Xenophon.

Which philosopher emphasized specialization and division of labor in ‘The Republic’?

Plato.

Which Greek thinker discussed private property in ‘Topics and Rhetorics’?

Aristotle.

What was the main goal of the Mercantilists?

Accumulating natural resources like land, gold, and silver.

Who led the Physiocrats and what economic idea did they highlight?

Francois Quesnay; they valued nature and proper use of natural resources, introducing the Tableau Économique.

Who is considered the ‘Father of Modern Economics’ and what policy did he promote?

Adam Smith; laissez-faire (let alone) policy.

What landmark book did Adam Smith write in 1776?

‘An Inquiry into the Nature and Causes of the Wealth of Nations.’

Which economist proposed the Malthusian Theory of population?

Thomas Robert Malthus.

What is the Law of Diminishing Marginal Returns, and who formulated it?

Output increases at a decreasing rate when one input is added while others are fixed; formulated by David Ricardo.

Which law explains why nations benefit by specializing in goods they produce at lower opportunity cost, and who stated it?

Law of Comparative Advantage; David Ricardo.

Who is the ‘Father of Modern Theory of Employment,’ and what is his major work?

John Maynard Keynes; ‘The General Theory of Employment, Interest, and Money.’

Which thinker is known as the ‘Father of Communism,’ and what are his two seminal works?

Karl Marx; ‘Das Kapital’ and, with Friedrich Engels, ‘The Communist Manifesto.’

How does studying economics sharpen political, economic, and moral ideas of individuals?

By analyzing choices, policies, and ethical implications of economic activity.

What scientific process does economics employ to study problems?

The Scientific Method: identify problem, form hypothesis, gather data, analyze data, draw conclusions and recommendations.

In what way is economics connected to Political Science?

Both analyze government actions and whose interests they serve.

Why is History vital to economic analysis?

Current economic decisions are based on past events; history records economic struggles and outcomes.

How does Sociology intersect with economics?

Social norms, laws, and culture influence people’s occupations and economic behavior.

What role does Ethics play in economics?

It deals with morality; disciplined, moral citizens partner with government for sound economic progress.

Why is Geography important to economics?

Physical features, climate, and natural resources influence production and economic activities.

How do Natural Sciences relate to economics?

Environmental changes affect livelihoods and national economies studied by economics.

Why is Biology relevant to economics?

Living beings—people, animals, plants—form essential inputs and consumers in an economy.

Give one economic connection of Chemistry.

Chemical inputs like fertilizers influence production costs that affect product pricing.

How does Physics affect economic production and supply?

Technological and energy advancements alter productivity and resource availability, impacting supply.

What analytical tools from Mathematics aid economists?

Numbers, charts, graphs, and mathematical equations model price changes, production growth, budgeting, etc.

Why is Psychology linked to economics?

Human desires and behavior (e.g., luxury consumption) influence demand and economic outcomes.

What does Anthropology contribute to economic study?

Understanding cultural evolution, artifacts, and values that shape consumption and production patterns.

Define individual choice in economics.

An individual’s decision to meet needs given limited resources.

What is social choice?

Collective decisions by individuals, groups, and government to address society’s needs.

What is meant by economic choice?

Decisions regarding alternative uses of scarce resources (e.g., food, clothing, housing choices).

What is a trade-off?

Choosing among alternatives by sacrificing or postponing one option to obtain another.

Define opportunity cost.

The value of the best alternative forgone to pursue a more beneficial option.

What is a benefit in economic decision-making?

The gain or advantage obtained from a chosen action.

Which Philippine central bank (BSP) projection was highlighted in the lecture?

That the Philippine economy could recover from the pandemic within the next one and a half years.