What are some basic economic concepts?

We'll introduce key concepts like opportunity costs, trade-offs, and production possibilities. We'll also dive into why specialization and exchange are so important, and how property rights and incentives help keep free markets functioning. Test your understanding of Basic economic concepts with these % (num)s questions.

What does economics mean?

(Show more) economics, social science that seeks to analyze and describe the production, distribution, and consumption of wealth. In the 19th century economics was the hobby of gentlemen of leisure and the vocation of a few academics; economists wrote about economic policy but were rarely consulted by legislators before decisions were made.

What is economics and why is it important?

1.1 What Is Economics, and Why Is It Important? Economics seeks to solve the problem of scarcity, which is when human wants for goods and services exceed the available supply.

What are the two branches of Economics?

Economics is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively. The two branches of economics are microeconomics and macroeconomics. Economics focuses on efficiency in production and exchange.