Economics Definitions
Sowell's Definition of Economics
The study of the use of scarce resources which have alternative uses
Prices send these
What are "signals"?
Part of the natural cycle of business
What is Failure?
These force a business owner to lower costs and sell what customers are most willing to pay for
What are profits?
Sacrificing something today for the hope of something greater tomorrow
What is "Investment"?
Greek Origin of "Economics"
"Oikos" - Household
"Neimen" - To Manage
Help producers decide what to produce
Help consumers decide what to buy
What is how prices help you make decisions?
Type of change including shifts in consumer behavior, culture, or values
What is Social Change?
Full words for "R.O.I"
What are "Returns on Investment"?
Story in the bible that illustrates the value of investments
What is the parable of the "talents"?
What is the Cultural Mandate
How prices change behavior and make efficient use of resources
What are incentives?
Type of change when interest rates fall, credit cards, and global change creates opportunities or challenges
What is Economic Change?
The price of efficiency in a capitalist economy
What are profits?
Investment in this involves education, training, and improving skills of people
What is "Human Capital"?
How one manages the resources and responsibilities God has given
What is stewardship?
When prices go up, this is what also goes up
What is Supply?
What happens when businesses are slow to adapt to change?
What is failure?
What is a Socialist Economy?
These are some examples of financial investments
What are stocks, bonds, mutual funds, real estate?
What everybody wants adds up to more than there is
What is Scarcity
When prices go down, this is what also goes down
What is demand?
Cost advantage with increased level of output
What is Economy of Scale?
When a certain company controls a market without any competition
What is a monopoly?
All investments require this uncertainty of future returns
What is "risk"?