Nouveau ! Découvrez Nomad'IA : le savoir de nos 400 profs + la magie de l'IA
What does the word “economics” mean?
The world “economics” comes from two Greek terms: “eco” meaning “home” and “nomos” meaning “accounts”.
Aristotle, the Greek philosopher first named Economics as a science of “household management”.
“The theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions.” John Maynard Keynes, General Theory of Interest and Money, 1922.
Scarcity, choice and opportunity cost
Economics is the study of how people make choices under scarcity.
Scarcity underlines the fact that resources and time are limited.
The notion of opportunity cost comes from the concept of scarcity. It includes both explicit and implicit costs:
| Opportunity Cost | ||
| Explicit costs | Implicit costs | |
| Require amoney payment | Don't require a money payment | |
Scarcity, choice and opportunity cost
Economics is the study of how people make choices under scarcity.
Scarcity underlines the fact that resources and time are limited.
The notion of opportunity cost comes from the concept of scarcity.
Economic Profits
Profit = Total revenue – Total cost
Economic profit = Total revenue – Opportunity cost
Accounting profit = Total revenue – Explicit cost
