Introduction to Economics (Araling Panlipunan 9 – Quarter 1 Week 1)

These flashcards cover core definitions of Economics, key economic problems, and the major thinkers and theories introduced in the Week 1 lecture notes for Araling Panlipunan 9.

What branch of social science studies how to meet limitless human needs and wants using limited resources?

Economics

According to the lesson, what key skill does Economics teach individuals and societies?

Making correct decisions

Define "scarcity" in economic terms.

The condition in which unlimited human wants exist alongside limited resources

Which ancient Greek writer promoted good household and farm management in the work “Oeconomicus”?

Xenophon

What key economic idea is discussed by Xenophon in “Oeconomicus”?

The importance of sound governance and leadership in managing resources

Which philosopher highlighted specialization and division of labor in his book “The Republic”?

Plato

Who supported private property as a way to encourage individual responsibility and wrote "Topics" and "Rhetoric"?

Aristotle

What was the primary goal of the Mercantilists?

To enrich the nation by hoarding gold, silver, and natural resources through strong trade

What did Mercantilists believe was the key to national economic growth?

Powerful, active foreign trade

Who led the Physiocrats and emphasized that nature is a nation’s true wealth?

Francois Quesnay

What economic diagram did the Physiocrats create to show the circular flow of goods, services, and income?

Tableau Économique

Who is regarded as the “Father of Modern Economics”?

Adam Smith

What economic policy, explained by Adam Smith, argues that government should not interfere with the operations of the private economy?

Laissez-faire or “Let Alone” policy

Name the landmark book written by Adam Smith in 1776.

“An Inquiry into the Nature and Causes of the Wealth of Nations”

How did Adam Smith define specialization?

Dividing production tasks according to workers’ capacities and skills to raise efficiency

Which economist introduced the Law of Diminishing Marginal Returns?

David Ricardo

State the Law of Diminishing Marginal Returns.

Continuous use of natural resources eventually yields smaller additional output from each extra unit of input

What principle, also from David Ricardo, says countries benefit by producing goods for which they have the lowest relative cost?

Law of Comparative Advantage

Which thinker warned that population grows faster than the food supply, causing widespread hunger?

Thomas Robert Malthus

What is the core claim of the Malthusian Theory?

Population increases geometrically while food supply grows arithmetically, leading to shortages

Who authored “The General Theory of Employment, Interest, and Money” and is called the Father of the Modern Theory of Employment?

John Maynard Keynes

According to Keynes, what role should government play during economic instability?

Actively spend and intervene to maintain stability and balance in the economy

Which writer is known as the Father of Communism and authored “Das Kapital”?

Karl Marx

What collaborative work did Karl Marx publish with Friedrich Engels?

“The Communist Manifesto”

According to Marx, who should own the factors of production in a truly equal society?

The state (representing the proletariat) should own and control production and distribution

What did Marx believe would remove capitalist exploitation?

A proletarian revolution overthrowing the capitalist class

Name two fundamental economic problems highlighted in the notes that every society must face.

Scarcity and choice (decision-making among alternative options)