Intro to Economics

Economics

The study of how society allocates scarce resources to best satisfy consumers wants and needs.

Scarcity

The condition where resources are finite while wants and needs are infinite.

Positive Economics

A branch of economics that observes what happens and states 'what is'.

Normative Economics

A branch of economics that makes predictions about what we think will happen; it deals with 'what should be'.

Macroeconomics

The field of economics that studies large scale activities and behaviors on a global and national level.

Microeconomics

The field of economics that studies small scale activities and behaviors of individuals, households, and firms.

Agricultural Economics

The application of economic theory to the agricultural sector, unique due to its reliance on land, weather, and food demand characteristics.

Scarce Resources

Resources that are limited in availability, including natural, human, and capital resources.

Production Decisions

Choices related to the production process, often affected by cost-benefit analyses.

Food Demand Characteristics

Attributes of food demand including necessity, perishability, and the need for constant purchases.