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What is economics?
Term | Definition |
---|---|
Economics | the study of how people deal with scarcity |
Scarcity | a fact of life that our resources are limited and there are too many needs |
Resources | limited |
Types of Resources | human resources, capital resources, natural resources, time |
Human resources | workers & their skills |
Capital resources | money, machines, equipment, laptops, factories |
Natural resources | water, oil, wood, fish, corn, plants |
Shortage | when the demand is high but the supply is low ex: shortage of corn or t-shirts |
Economists | they study how people make decisions and interact with each other |
Greg Mankiw | famous US economist & professor who teaches Intro to Econ at Harvard |
Economize | to spend less |
The economy | the trade system we use to satisfy our needs |