Flash Cards: Introduction

Economics is the study of man in the ordinary business of life, focusing on how people make choices to satisfy their unlimited wants with limited resources.

A consumer is an individual who purchases goods or services to satisfy personal needs, wants, or to provide for others.

An employee is a person working for another individual or organization, receiving wages or salary in exchange for their services.

An employer is an individual or organization that hires employees and pays them wages or salaries for their work.

Economic activities are actions undertaken to produce, distribute, or consume goods and services for monetary gain.

Scarcity refers to the limited availability of resources that prevents the satisfaction of all human wants, leading to economic problems.

Examples include long queues for tickets, crowded transportation, and shortages of essential commodities.

The choice problem arises because resources have alternative uses; limited resources force individuals to make decisions on how to allocate them.

The three main parts of economics are consumption, production, and distribution.

The study of consumption focuses on how consumers decide what to buy based on income and prices.

The study of production examines how producers decide what and how to produce to meet market demand.

Distribution refers to how the total income (GDP) produced in the country is divided among wages, profits, and interest.

Economic disparity refers to the differences in income and wealth among individuals and households in society.

Statistics helps in analyzing data related to economic activities, measuring poverty, income distribution, and understanding economic phenomena.

Quantitative analysis involves using statistical tools to assess numerical data related to economic trends and behaviors.

Economic planning aims to optimize the allocation of resources to achieve specific economic goals and improve living standards.

Common questions include why income levels vary, how poverty is measured, and the impact of education on job opportunities.

Alternative uses of resources refer to the different ways resources can be utilized in producing various goods and services.