An Economic Way of Thinking Lesson 1 Lecture NEW BOOK MASTER

What is the main focus of economics?

• The study of the use of scarce resources that have alternative uses

• The study of weather patterns

• The study of animal behavior

• The study of ancient civilizations

Which of the following is a characteristic of positive economics?

• NO Value Judgements

• Value Judgements

• What ought to be?

• Should people use money?

What does normative economics focus on?

• What ought to be?

• What is?

• Why do people use money?

• NO Value Judgements

What does microeconomics study?

• Individual agents (people) and markets

• The entire (whole) economy

• The weather

• Genetics

What does macroeconomics study?

• The entire (whole) economy

• Individual agents (people) and markets

• The behavior of animals

• The structure of DNA

According to the material, what do economists study?

• Markets, Crime, War, The Family, Religion, Culture, Politics, Law, and Genetics

• Only money and banking

• Only government policies

• Only international trade

How do economists define economics in terms of resources and wants?

• The study of how people choose to use their limited resources to satisfy their unlimited wants

• The study of how people use unlimited resources for limited wants

• The study of how people avoid using resources

• The study of how people create resources from nothing

Who is known as the "Father of Modern Economics"?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• Milton Friedman

What is the main idea presented in Adam Smith's book "The Wealth of Nations"?

• An individual needs to fulfill self-interest to result in societal benefit

• The government should control all economic activity

• Wealth is created by accumulating gold and silver

• Trade should be restricted to protect local industries

What is competition in economics?

• The process by which various sellers each try to offer better products, lower prices, and other advantages to get buyers to choose their products

• A system where only one seller controls the market

• A government policy to regulate prices

• A method of dividing resources equally among all citizens