Basic Concepts of Economics and Microeconomics

Flashcards covering the foundational definitions, etymology, key concepts, and interdisciplinary relationships of Economics based on the lecture notes.

Economics

A social science that studies the actions, behaviors, and efforts of people to make a living and the government's efforts to manage the economy affecting the lives of people and society.

Oikonomos

The Greek word from which 'economics' is derived, literal meaning household management.

Oiko

A Greek term which means home or household.

Nomos

A Greek term which means management.

Opportunity Cost

The value of the best alternative that is given up or sacrificed in every decision made; also referred to as a wasted opportunity.

Trade-off

The act of choosing or sacrificing one thing in exchange for another to help analyze and make the best decision.

Marginal Thinking

A concept where an individual examines the additional value, whether it be cost or benefit, gained from a specific decision.

Incentives

Benefits or rewards, such as discounts or better services, offered by producers to influence and change a consumer's decision.

Microeconomics

A branch of economics that focuses on small and individual sectors, such as households, markets, and the setting of prices in local communities.

Macroeconomics

A branch of economics that studies the overall and general dimensions of the economy, such as GDP, inflation, and national employment.

Political Science

The study of political life, government structures, and laws, all of which affect the nation's livelihood and way of life.

Sociology

The study of the origins and structures of society, focusing on how customs and beliefs affect the livelihood of people.

Philosophy

The study that seeks to understand the mystery of life and reality, serving as the foundation for institutions like government and the economy.

Psychology

The scientific study of mental processes and behavior, used to understand how workers can be more productive.

Geography

The study of the physical characteristics of a country, including climate and natural resources.

History

The study of past events that serve as a basis for current decisons in life and livelihood.

Archaeology

The study of the past through the identification and interpretation of material remains and cultural artifacts.

Demography

The study of the distribution, composition, and changes in the human population, especially the labor force.

Statistics

Provides numerical trends and data that economics interprets to create correct policies for the labor market.

Economics as a Social Science

The classification of economics that focuses on people—their needs, wants, decisions, and relationships within society.

Economics as a Science

The classification of economics that uses systematic study, the scientific method, and evidence to explain and predict economic events.