Introduction to Economics II

What does Economics deal with?

• The study of historical financial events

• The analysis of political systems

• How people satisfy their needs and wants by making choices

• The study of geographical landscapes

What are the main focuses of Economics?

• Production, distribution, and consumption of goods and services

• Development of technology and innovation

• Cultural studies and societal norms

• Legal systems and international laws

What does Microeconomics study?

• The study of global economic trends

• How individuals and companies make decisions to allocate scarce resources

• The study of an economy as a whole

• The analysis of consumer behavior in a vacuum

What is the focus of Macroeconomics?

• The study of individual markets

• The study of an economy as a whole

• The analysis of small-scale economic interactions

• The study of single economic entities

What is an example of economics in action at a local business level?

• A local clothing boutique business is using consumers' buying decisions and fashion trends to help them decide on what type of clothes to sell for this season.

• A local grocery store is repainting its walls.

• A local library is extending its opening hours.

• A local gym is replacing old equipment.

Why does economics matter in everyday life?

• It helps in choosing what movies to watch.

• It affects businesses, people, and government because economics helps us understand using our limited resources to supply the wants and needs of the economy.

• It only matters to economists and financial analysts.

• It is only concerned with the production of goods.

Needs are things that are:

• Optional for a luxurious life.

• Required for you to survive and are essential.

• Not important for daily activities.

• Only related to personal hobbies.

Which of the following is NOT an example of a need?

• Water

• Food

• Internet

• Shelter

What are economic wants?

• Things that are essential for survival

• Things that you do not have to have to survive, but you would like to have

• Things that never change

• Things that decrease the quality of life

Which of the following is an example of an economic want?

• Food

• Water

• Smartphones

• Shelter