Economics Basic Notes
Economics investigates human behaviour and its consequences on a world with scarce resources.
Economics:
Deals with practical problems like inflation.
The need to understand economics to the economic problem arises because the supply of the resources is limited in relation to the demand or wants of individuals.
Since the wants of society are unlimited in relation to the supply of resources, the problem of scarcity arises
The more scarce the item the more money.
Therefore if something is to be called scare in the economic sense, two conditions must be met * People must want the item * The amount of it must be limited
Hand Out 1. Because our resources are limited. 2. Because each country has only a limited resources 3. What goods and services to produce, how to produce the goods and services, which gets the goods and services. 4. There is only a certain amount of recourse that a country can produce.
Throughout history, different types of economics system have used different approaches to solving the economic problem.
Some economic systems are closely controlled; others operate with more individual freedom.
Market: the price mechanism allocates resources according to consumer preference. Individuals make key economic decisions based on self-interest, profit, etc.
Other countries known as a market economy include……………… * US * UK * Japan * Germany * Nz * What to produce and how much is determined by the price mechanism. * How to produce is determined by the profit motive as produces will attempt to limit costs * * * To whom to distribute is determent by incomes * The government still plays a role in running the economy * Larger businesses may dominate the marketplace
9. A. To produce more of any one product, some resources must be shifted away from the production of another product when a country’s human and material resources are being fully and efficiently used.
Economics:
Deals with practical problems like inflation.
The need to understand economics to the economic problem arises because the supply of the resources is limited in relation to the demand or wants of individuals.
Since the wants of society are unlimited in relation to the supply of resources, the problem of scarcity arises
The more scarce the item the more money.
Therefore if something is to be called scare in the economic sense, two conditions must be met * People must want the item * The amount of it must be limited
Hand Out 1. Because our resources are limited. 2. Because each country has only a limited resources 3. What goods and services to produce, how to produce the goods and services, which gets the goods and services. 4. There is only a certain amount of recourse that a country can produce.
Throughout history, different types of economics system have used different approaches to solving the economic problem.
Some economic systems are closely controlled; others operate with more individual freedom.
Market: the price mechanism allocates resources according to consumer preference. Individuals make key economic decisions based on self-interest, profit, etc.
Other countries known as a market economy include……………… * US * UK * Japan * Germany * Nz * What to produce and how much is determined by the price mechanism. * How to produce is determined by the profit motive as produces will attempt to limit costs * * * To whom to distribute is determent by incomes * The government still plays a role in running the economy * Larger businesses may dominate the marketplace
9. A. To produce more of any one product, some resources must be shifted away from the production of another product when a country’s human and material resources are being fully and efficiently used.