INTRO TO ECONOMICS
1. What is economics?
It is all about how people and societies decide to use their limited sources.
It looks at how decisions are made and how resources are used.
2. Three things that economics is NOT focused on:
It doesn't just look at how goods are made.
It's not only about money and finance.
It is not about predicting individuals actions all the time.
3. What is the concept of opportunity cost?
It is the idea that when you make a choice , you give up something else that
could have been beneficial. The example is when a university prioritizes
increasing enrollment numbers over ensuring quality education. The opportunity
cost here is the potential for lower-quality graduates and the long-term impact on
the university's reputation and student success.
4. List the most important assumptions in economics:
Scarcity: This means that we don’t have enough resources to satisfy all our
wants, so we have to make choices.
Rational behavior: This assumes that people try to make the best choices for
themselves to get the most satisfaction or benefit from their decisions.
5. An example that cost outweighs the benefit:
A city decides to build a new stadium. While the intention is to boost the local
economy and create jobs, the costs—like high construction expenses and
1. What is economics?
It is all about how people and societies decide to use their limited sources.
It looks at how decisions are made and how resources are used.
2. Three things that economics is NOT focused on:
It doesn't just look at how goods are made.
It's not only about money and finance.
It is not about predicting individuals actions all the time.
3. What is the concept of opportunity cost?
It is the idea that when you make a choice , you give up something else that
could have been beneficial. The example is when a university prioritizes
increasing enrollment numbers over ensuring quality education. The opportunity
cost here is the potential for lower-quality graduates and the long-term impact on
the university's reputation and student success.
4. List the most important assumptions in economics:
Scarcity: This means that we don’t have enough resources to satisfy all our
wants, so we have to make choices.
Rational behavior: This assumes that people try to make the best choices for
themselves to get the most satisfaction or benefit from their decisions.
5. An example that cost outweighs the benefit:
A city decides to build a new stadium. While the intention is to boost the local
economy and create jobs, the costs—like high construction expenses and
