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Economics Defined
Economics studies how people and institutions within a society make choices, and how the choices determine how the resources of society are used. To keep the definition of economics clear to students during discussion of the chapter, project the definition, leaving ample space for inserting comments. You can then analyze each important word in the definition, adding to the definition as you proceed. In this way students will have a birds-eye view at all times.
systematized according to general laws or principles. As a social science, economics studies the behavior and interactions of human beings, individually and in groups, and is thus related to political science, sociology, psychology, and ethics. However, some of its laws are based on physical phenomena, and it also is closely related to mathematics.
H. Economic Terms and Concepts. Economics has its own jargon and terminology.
Understanding economics terminology is essential. In addition to defining marginal analysis, assumptions, rational behavior, and equilibrium; be sure that students understand that the concepts are fundamental building blocks for the study of economics. Also review the fallacy of composition, the paradox of thrift, and moral hazard.