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economize

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to use limited resources efficiently in production; use resources wisely

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oikos

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the Greek word for "household" or "family estate"

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nemo

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the Greek word for "to manage"

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oikonomia

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the Greek word that refers to the science of household or estate management

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economics

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the study of the way society makes decisions about the use of scarce resources

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social science

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science, such as economics, history, and sociology, that studies some aspect of human behaviour

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effective

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a particular use of resources that achieves a desired end, such as consumption

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efficient

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the use of a bare minimum of resources necessary to achieve a desired end, such as consumption

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needs

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basic human physical requirements necessary to sustain life, such as food, clothing, and shelter

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wants

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the desire for goods or services not essential to sustain human life, such as stylish clothing, exotic foods, jewellery, or travel in the tropics

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goods

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the concrete, physical products we manufacture, such as furniture and automobiles

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services

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the activities we engage in and sell to others, such as medical and retail services

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resources

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all those elements used in the production of goods and services designated to meet our needs and wants

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natural resources

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all the resources in nature that have value, such as land, minerals, fresh water, and forests

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human resources

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also called labour, the human efforts used in the production of good and services

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capital resources

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goods used in the production of other goods and services, such as factories, machines, and tools

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scarcity

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the fact that only a limited amount of resrouces is available to produce a limited number of goods and services to meet ralatively unlimited human wants

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economic goods

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goods that are scarce and have economic values

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free goods

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goods that have no scarcity and exist in sufficient quantities to satisfy everyone's wants

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opportunity cost

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the cost of all that is lost from taking one course of action over another; the second best choice you give up in order to get your best choice

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analytical economics

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another word for positive economics; the branch of economics that deals with facts and direct observation of the world

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positive economics

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another word for analytical economics, concerned with descriptive and conditional statements

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descriptive statement

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a statement which portrays things as they are in the present or have been in the past

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conditional statement

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a forecast based on the careful analysis of economic behaviour

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normative economics

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another word for policy economics; the branch of economics that deals with value judgements about economic subjects rather than facts and observations

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policy economics

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another word for normative economics; deals with value judgements

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normative statement

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a statement which expresses what a particular economicst or group of economists thinks should be the case, based on their value judgements; a statement that cannot be confirmed or refuted solely by reference to facts

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origin

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as used in graphs, the point at which the vertical and horizontal axes meet

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x-axis

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as in graphs, the axis where quantity is plotted along

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y-axis

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as in graphs, the axis where price is plotted along

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inverse relationship

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as in graphs, the relationship which the line illustrates a downward slope of the relationship between two variables

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scientific method

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a method of study used to make discoveries in natural science and social sciences

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observation

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the first basic component of the scientific method

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data collection

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the second basic component of the scientific method

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explanation

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the third basic component of the scientific method

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verification

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the fourth basic component of the scientific method

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Francis Bacon

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the English scientist who first outlined the four basic components of the scientific method

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economics

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the science of scarcity and choice

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human behaviour and value systems

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two things which greatly complicate studies in the social sciences

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Xenophon

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a free citizen-soldier of Athens around 430 BCE; the father of economics who wrote the book Oeconomicus

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oikos

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the basic unit of classical Greek society; a large family estate or houshold, including land, crops, a house, family members, slaves, animals, and accumulated wealth

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agriculture

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what the economy of Greece was based on

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knowledge of group behaviour and general tendencies

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the two kinds useful information for decision makers

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economy

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a self-sustaining system in which many independent transactions (often triggered by self-interest) create distinct flows of money and products

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economy

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a very complex or intricate system

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economy

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it is dynamic or subject to movements and exchanges

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economy

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it consists of interdependent people, groups, and institutions, each performing specialized roles

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economy

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it involves a series of independent transactions motivated by economic goals

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economy

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it involves numerous transactions that create two circular flows (money moves in one direction while goods and services move in the opposite direction

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descriptive statement

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which kind of statement is this, "Automobile sales in Canada in this quarter are 7 percent higher than in the last quarter."

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conditional statement

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which kind of statement is this, "If the price of cigarettes decreases, the quantity purchased will increase."

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descriptive statement

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which type of statement is this: factual observations that can be verified or confirmed

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conditional statement

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which type of statement is this: forecasts

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conditional statement

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which type of statement is this: If income taxes are reduced, consumer spending will increase

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normative statement

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which type of statement is this: Governments should provide affordable daycare for working parents

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normative statement

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which type of statement is this: cannot be confirmed or refuted solely by reference to facts

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normative statement

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which type of statement is this: it requires political decision making focused on the common good or the collectie well-being of a society

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fallacy

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a hypothesis that has been proven false but is still accepted by many people because it appears to make sense

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fallacy of composition

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a mistaken belief that what is good for an individual is automatically good for everyone, or vise versa

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fallacy of composition

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which fallacy does free trade represent

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fallacy of single causation

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a mistaken belief, based on oversimplification, that a particular event has one cause rather than several

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fallacy of single causation

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which fallacy does it contain: stock market crash caused the Great Depression

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cause-and-effect fallacy

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a mistaken belief that what occurs before some event is logically the cause of it

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post hoc fallacy

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another name for cause-and-effect fallacy

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