Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

0. Basic Principles of Economics

Introduction to Economics

Microeconomics

0. Basic Principles of Economics

Introduction to Economics

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Multiple Choice

Economics can be best defined as the study of

Profit maximization

Predicting inflation patterns

Income distribution and the effects of poverty

How society manages its scarce resources

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Verified step by step guidance

Begin by understanding the fundamental definition of economics. Economics is the study of how individuals and societies allocate their limited resources to satisfy their unlimited wants.

Recognize that the core issue in economics is scarcity, which means that resources are limited while human wants are unlimited. This necessitates making choices about how to allocate resources efficiently.

Consider the various aspects of economics, such as microeconomics, which focuses on individual and business decision-making, and macroeconomics, which looks at the economy as a whole.

Reflect on the options provided in the problem. While profit maximization, predicting inflation patterns, and income distribution are important topics within economics, they are not the overarching definition of the field.

Conclude that the best definition of economics is how society manages its scarce resources, as it encompasses the broad scope of economic study, including decision-making, resource allocation, and addressing scarcity.