Introduction to Economics and Statistics

Vocabulary flashcards generated from lecture notes on key economics definitions, types of economic activities, economic problems, factors of production, and statistics.

Economics

A social science of human behaviour which aims at the allocation of scarce resources in such a way that consumers can maximize their satisfaction, producers can maximize their profits, and society can maximize social welfare.

Wealth Definition of Economics

A definition of economics as the science of wealth, focusing on goods that satisfy human wants, ways to increase national wealth, and activities involved in generating and using wealth.

Welfare Definition of Economics

Formulated by Alfred Marshall as "the Study of Man in the ordinary business of Life," focusing on how ordinary people get income and the various uses of it.

Scarcity Definition of Economics

Formulated by Prof Lionel Robbins as a science that studies human behavior as a relationship between ends and scarce means which have alternative uses.

Growth Definition of Economics

Formulated by Paul A. Samuelson as the study of how people and society choose, with or without money, to employ scarce productive resources with alternative uses to produce commodities over time and distribute them for consumption.

Economic Activities

Activities related to the ordinary business of life that are performed with the objective of earnings or monetary gain.

Non-Economic Activities

Activities not related to earning money or wealth, which neither generate income nor increase the flow of goods and services.

Scarcity (in Economics)

The insufficient supply of a commodity in relation to its demand.

Economic Problem

The problem of choice (or allocating scarce resources to alternative uses) arising because resources are scarce and have alternative uses.

Consumer

An economic agent who buys goods and services for the satisfaction of his wants.

Producer

One who produces and/or sells goods and services for the generation of income.

Production

The process of converting raw materials into useful things as they acquire utility value, thereby increasing the flow of goods and services.

Consumption

The process of using up the utility value of goods and services for the direct satisfaction of individual and collective wants.

Utility Value

The inherent capacity of goods and services to satisfy human wants.

Saving

That part of income which is not consumed, acting as an abstinence from consumption where $\text{Income} - \text{Consumption} = \text{Savings}$.

Investment

Expenditure by producers on the purchase of assets that help to generate income.

Service Holder

A person who is employed in a job and provides services as a factor of production for payment.

Service Provider

A person who provides services directly to others for payment.

Distribution of Income

Refers to the distribution of Gross Domestic Product (GDP) among owners of the factors of production (land, labour, capital, and entrepreneurship).

Exchange

Refers to the process of give and take of goods and services among economic agents in exchange for money.

Statistics

Quantitative information or the quantification of facts and findings using systematic methods to visually represent data, draw conclusions, and make comparisons.