- •1.What kind of science is economics?
- •2. What does economics explain?
- •4. What economic issues do we meet with every day of our lives?
- •1.What is economics?
- •11. What do economists use to explain or describe the “world that is”?
- •17. Why does positive economics avoid value judgements?
- •18. Why do economists use positive economics?
- •22. Why can some economic issues never be decided by using facts?
- •1/ What are economic resources?
- •21. What factors of production are active (flexible) and passive (fixed)? Why?
- •1.What are the three basic economic questions that every society must answer?
- •2.What makes each society look for the answers to the basic economic questions?
- •3/ How does each society make its decisions to solve the problem of scarcity?
- •6/What does the Who question mean?
- •7/What is an economic system?
- •9/What is a traditional economy?
- •11/ Why are there few social changes within a traditional economy?
- •12/What is a command economy?
- •13/ Who makes decisions on the fundamental economic questions in a society with a command economy?
- •15/Why do the individuals have very little say as to how the basic economic questions are answered?
- •16/What is a market economy?
- •19What is a free enterprise system based on?
- •20/Who owns the means of production in a society with a market economy?
- •1. Why is the theory of supply and demand considered one of the most fundamental concepts of economics?
- •2. What is demand?
- •3. What factors alter consumer demand?
- •4. What goods are considered to be related?
- •8. What does the law of diminishing marginal utility explain?
- •9. What does the law of demand state?
- •7.What is a supply schedule?
- •8.What is a supply curve?
- •9.What does supply curve enable producers to anticipate?
- •10.What does each point along the curve represent?
- •21.How does the cost of production affect the behavior of producers?
- •24.How do future expectations affect the quantity supplied?
- •25.Why are profit opportunities considered as factors that influence the quantity supplied?
- •29.Why is elasticity important in understanding supply and demand theories?
- •31.When supply is elastic?
- •In a Market Economy
- •1.What is a price?
- •3.What is a price system?
- •12. What does the characteristic of perfect competition “no barriers to enter or exit the market” mean? .
- •7. What does legal tender mean?
- •25. What does the purchasing power of money mean?
- •8.What drawbacks do they have?
- •9.What is difference between credit and debit cards?
- •11.What is a charge account?
- •14.What is a consumer credit?
- •15.What does consumer credit provide?
- •17.What is a consumer loan?
- •21. Why is savings considered one of the ways of good money management?
- •23. What factors should be considered before staring any kind of savings program? 24. What does safety mean?
- •25. What is liquidity? •
- •29. What does the yield depend on?
- •30. What accounts are offered by depository institutions?
- •32. Why do some people put their money in savings accounts? •
- •35. Why do financial institutions charge the highest interest rates on cDs?
- •38. What steps should be taken to reach financial goals?
- •6. What is a sole proprietor responsible for?
- •15. What is a corporation?
- •16. What is the essential feature of a corporation?
- •17. Who owns a corporation?
- •23. Why does a corporation have a continuous existence?
- •27. What does double taxation refer to?
- •28. What are dividends?
- •29. What is the role of the board of directors?
1.What is economics?
There are many various opinions concerning economics, but, in general, economics is the systematic study of choosing which goods and services will be produced and consumed to satisfy society’s wants.
2. Why is economics considered a social science?
Since economics involves interactions among members of society it is a social science that studies the behaviour of people in producing, distributing, exchanging, and consuming goods and services.
3. What is microeconomics?
Microeconomics is the study of individual consumers and business firms who make choices on such matters as what to buy and what to sell, how much to work and how much to pay, how much to borrow and how much to save.
4. What does microeconomics focus on?
. Microeconomics focuses on how individuals and firms behave, how they interact in the market, and how these interrelations determine a price and allocate scarce resources.
5. Why does microeconomics not look into a specific individual’s behaviour?
Microeconomics is not used to determine how a specific individual will act, since it examines how an “average” individual will probably behave under a certain set of conditions.
5. Why does microeconomics trace cause-and-effect relationships?
. It tracks cause-and-effect relationships that influence choices of individuals, businesses and society and is concerned with issues such as scarcity, choice and opportunity costs, and with production and consumption.
6. What economic issues does microeconomics do with
Microeconomics is concerned with issues such as scarcity, choice and opportunity costs, and with production and consumption. The principal emphasis is given by microeconomists to the study of prices and their relationship to any economic units.
7. What is macroeconomics?
Macroeconomics is the study of the economy as a whole. Macroeconomics seeks solutions to macroeconomic problems such as how fast the economy is growing, how employment can be increased, how much total income is, how inflation will effect economic growth and how different governmental policies can be used to stabilize the level of business activity in the economy.
8. What economic issues does microeconomics look at? Macroeconomics seeks solutions to macroeconomic problems such as how fast the economy is growing, how employment can be increased, how much total income is, how inflation will effect economic growth and how different governmental policies can be used to stabilize the level of business activity in the economy. Macroeconomics looks into the total effect of individual choices on the overall productive efficiency of the economy reflected by such economic indicators as the nation’s price level, total output, and level of employment.
9. Why does macroeconomics look into the total effect of individual choices? Macroeconomics looks into the total effect of individual choices on the overall productive efficiency of the economy reflected by such economic indicators as the nation’s price level, total output, and level of employment
10. What are two worlds that economists deal with? Everyone should realize that economists deal with two worlds: the “world that is”, and the “world that ought to be”.