Key Concepts in Economics

The video introduces basic economic concepts, including opportunity cost, supply and demand, scarcity, and trade-offs. It emphasizes the importance of thinking like an economist by modeling these concepts mathematically and visually. The video also discusses the dual nature of economics as both a science and a study of human behavior, encouraging viewers to explore further through resources like Khan Academy.

What is the term used to describe the cost of choosing one option over another?

• Sunk cost

• Opportunity cost

• Variable cost

• Fixed cost

How does an increase in the number of buyers affect the price of a product?

• The price increases

• The price decreases

• The price remains the same

• The price fluctuates randomly

What is the term for the limited nature of resources?

• Abundance

• Scarcity

• Surplus

• Plenitude

What is the primary focus of economics as an academic field?

• Studying historical events

• Allocating resources under scarcity

• Predicting weather patterns

• Analyzing political systems

Which concept explains why countries benefit from specializing in certain goods?

• Strategic advantage

• Competitive advantage

• Comparative advantage

• Absolute advantage

Why might trade not always be beneficial for everyone?

• It always leads to economic growth

• It can create dependencies

• It eliminates competition

• It increases resource availability

What is a key characteristic of economics that makes it similar to traditional sciences?

• It focuses on individual case studies

• It relies on philosophical debates

• It uses historical analysis

• It employs mathematical models

What is a common assumption made in economic models?

• All humans are irrational

• All humans are rational

• Resources are unlimited

• Markets never fail

What is the term used to describe the study of how humans act in groups?

• Anthropology

• Microeconomics

• Sociology

• Macroeconomics

What is the benefit of modeling economic concepts visually and mathematically?

• It simplifies complex ideas

• It makes economics more entertaining

• It eliminates the need for data

• It provides exact predictions