Economics What is “Economics”

Introduction How would you define economics? Why are some people and nations wealthy and others poor?

Key Terms Economics: Economy: the study of how people choose to use their limited resources to satisfy their unlimited wants Economy: a system used to manage limited resources for the production, distribution, and consumption of goods and services

Key Terms Economic Enigma: Resource: a puzzle or riddle that may be explained through economic analysis Resource: Anything used to produce an economic good or service

Key Terms Microeconomics: Macroeconomics: the study of the economy at the level of individuals, households, and businesses Macroeconomics: the study of the workings of the economy as a whole

Key Terms Positive Economics: Normative Economics: the branch of economics that uses objective analysis to find out how the economy actually works Normative Economics: the branch of economics that makes value judgments about the economy; its focus is on which economic policies should be implemented

ECONOMICS Follow these steps to write a nine-line acrostic poem explaining what economics is about. Write the term ECONOMICS vertically along the left side of this page. Begin each line with a word that starts with the appropriate letter. Each line must help answer the question, what is economics all about? Include the following terms somewhere in your acrostic: enigma, resource, normative economics, and positive economics.

ECONOMICS E C O N M I S