ECONOMICS

What is “Economics”

Introduction

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

and others poor?

Key Terms

Economics: 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: a puzzle or riddle that may be explained

through economic analysis Resource:

Anything used to produce an economic good or service

Key Terms

Microeconomics: 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: 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 O M I C S