25625547
Description
Flashcards by cecilia valente, updated more than 1 year ago
|
Created by cecilia valente
about 4 years ago
|
|
| Question | Answer |
| * You don't need to be an expert to understand the word 'economy' * The word 'Economy' is very old. It derives from two ancient Greek words | These words are: 1) Oikos 'house' 2) Nomoi 'rules/management' * The word 'economy' effectively means 'the management of what is around us (our resources)' |
| * When you decide how to use your time, your room, your intelligence, the resources of the world around you, you act as an ECONOMIST, in the purest sense of the word. | * The discipline known as Economics - studies how people and countries use their resources: (including money) * The discipline that focuses only on how we make and manage money is called FINANCE |
| * There are only 24 hours a day, there is only so much space you can have, only so many friends you can play with, only so many types of sports you can choose | * In economics these limits are called: SCARCITY (scare-cee-tee). *Because our resources are limited, we face scarcity |
| * Because of scarcity, you must also deal with what is known as the OPPORTUNITY COST | * We face the opportunity cost MANY TIMEs A DAY; when we decide how to use our time, our space, our money, even our intelligence. |
| Let's have an example: because you are working on this course, you are NOT doing something else. YOU are facing the opportunity cost attached to working on this course | * If you choose not to work on this course and do something else, you give up on the chance to learn something new and (hopefully) something useful. |
| * The opportunity cost is the price you, I and everyone else pay for making a choice | * The choices you make say something about you and your priorities. The opportunity cost helps you define yourself! |
Want to create your own Flashcards for free with GoConqr? Learn more.