APPLIED ECONOMICS - LESSON 1

Applied Economics Overview

Economy Definition

• Economy: Wealth and resources focused on production/consumption of goods/services.

Trade Economics

• Economics of Trade: Study of resource management in society.

Major Economic Problems

• Scarcity: Limited resources.

• Surplus: Excess resources.

Key Figures

• Adam Smith: Father of Modern Economics; authored "The Wealth of Nations" (1776).

Learning Competencies

• Differentiate between Social Science and Applied Science.

Economic Choices

• Choices involve producing/consuming, related to opportunity costs.

Allocation Mechanisms

• Focus on allocating scarce resources; includes market mechanisms (supply/demand).