Needs — definition?
States of dissatisfaction motivating pursuit of goods.
Goods — definition?
Items capable of satisfying needs.
Scarcity — role?
Creates resource limitations, necessitating choices.
Resources — function?
Inputs used to produce goods/services.
Opportunity Cost — meaning?
Value of next best alternative foregone.
Economic Efficiency — goal?
Maximize output and satisfaction with limited resources.
Mercantilism — focus?
Accumulating gold through trade surplus and protectionism.
Physiocracy — main idea?
Land is primary wealth source, favoring agriculture.
Classical Economics — key advocate?
Adam Smith, emphasizing free markets.
Neoclassical Economics — focus?
Marginal utility and individual optimization.
Marxism — critique?
Capitalism exploits labor, leading to crises.
Keynesian Economics — emphasis?
Demand management and government intervention.
Microeconomics — study of?
Individual agents' behaviors and decisions.
Macroeconomics — study of?
Aggregate economy-wide variables.
GDP — definition?
Total value of final goods/services produced domestically.
Balance of Payments — purpose?
Records international transactions over time.
Test your knowledge with 8 questions on Fundamentals of Economics and International Finance.
1. What does the term 'opportunity cost' mean in economics?
2. Who is considered the founder of classical economics, and in what year was his seminal work published?
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