What is the definition of economics?
Economics is the study of how people allocate scarce resources to satisfy their wants. It covers topics such as supply and demand, inflation, taxes, international trade, and more. Understanding economics can help you make better decisions about your money and career.
Introduction to Economics
Gross Domestic Product (GDP): The total value of goods and services produced by a country in a given period of time. Inflation: An increase in prices and a decrease in the purchasing power of money. Supply and Demand: The amount of a product or service available and the desire of buyers for it, which determines its price.
Economics has its roots in the ancient Greek world, with the first known economic thinker, Aristotle, living around 350 B.C. The first paper money was issued in China during the Tang Dynasty in the 7th century A.D. The first central bank, the Bank of Sweden, was established in 1668 by King Charles XI
Did you know?
Work together in pairs: What is the difference between scarcity and shortage in economics?
Work together in pairs: What are the three components of Gross Domestic Product (GDP)?
Brain break: Draw a pizza flying in space surrounded by aliens.
The study of how individuals and societies choose to use limited resources is known as:
The study of how goods and services are made and sold is known as:
The three basic economic questions are:
- What, How, and Who
- When, Where, and Why
- What, How, and For Whom
- Who, What, and Where
What is the term for the study of the money and investments within an economy?
The term for the process of exchanging goods and services between buyers and sellers is: