Preview

Notes on Economics

Better Essays
Open Document
Open Document
1124 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Notes on Economics
The circular flow model is defined as the flow of resources from households to firms and of products to firms from households. These flows are accompanied by reverse flows of money from firms to households and from households to firms. The circular flow is comprised of the resource market, households, product market, businesses, and the government. Macroeconomics - The study of the aggregate (total) Behavior of the whole economy. Macroeconomics Aggregates:
- Unemployment rate: Percent of people in the labor force is not working but searching for work.
- Inflation rate: Percent rise in the average price of all goods and services.
- GDP: Dollar value of all final goods and services produced within a country in a given year; output
A Market is an institution or mechanism which brings together buyers (demanders) and sellers (suppliers) of particular goods and services.
The Forces of supply and demand - In the United States and in other free enterprise systems, the distribution of resources and products is determined by supply and demand. Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. A fundamental characterisic of demandis all else being constant, as prices fall, the quantity demanded rises. Vice versa all ther things remaining the same as price increases, the corresponding quanity demanded falls.

Supply - The number of products-goods and services that businesses are willing to sell at different prices at a specific time. As price increases, the corresponding quantity supplied increases; as prices fall, the quantity supplied also falls.

Equilibrium Price - The supply and demand curves intersect at the point where supply and demand are equal. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.

The United States and the economy - The United States has the most powerful,

You May Also Find These Documents Helpful

  • Good Essays

     Gross domestic product (GDP) – GDP is the total market value of all final services and goods produced in a given year in a given country.…

    • 938 Words
    • 4 Pages
    Good Essays
  • Good Essays

    section 1 study quesions

    • 650 Words
    • 3 Pages

    The country's GDP which is the gross domestic product, is the value of the goods and services produced in that country.…

    • 650 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Economics Outline Ch 17

    • 474 Words
    • 2 Pages

    1. Unemployment rate - Percentage of the civilian labor force which is unemployed. A lagging indicator.…

    • 474 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Supply and Demand is a phrase that every one hears in one way or another, Supply and demand phrase according to Colander, (2010) is the most used phrase by economist and the reason is because the phrase provides a good “off-the-cuff” answer for many question that have to do with economy. Example why are interest rates to Low? Because supply and demand. Why is Gasoline so high? supply and demand. This paper will speak about a simulation found on University of Phoenix student website, simulation named “Applying Supply and Demand Concepts” This paper will speak about macroeconomics and microeconomics principles, Paper will also refer to shift of the supply curve and shift of the demand curve. Also how the how concepts of Microeconomics and Macroeconomics help understand the factors that affect shifts in supply and demand on the equilibrium price and quantity, and last how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.…

    • 977 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The price of a product is determined by the supply and demand of the good…

    • 313 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    According to McConnell, Brue and Flynn (2009) demand is a schedule or a curve that shows the various amount of a product that consumers are willing and able to purchase at each of series of possible prices during a specific period of time (McConnell, Brue, & Flynn, 2009, p. 46). The inverse relationship between price and quality demanded is the quantities of a product that will be purchased at various possible prices (McConnell, Brue, & Flynn, 2009). An important concept of demand is when prices fall, the quantity demanded rises and as the price increases, the quantity demanded falls. Determinants of demand are (1) consumers’ tastes (preferences), (2) the number of buyers in the market, (3) consumers’ incomes, (4) the prices of related goods, and (5) consumer expectations they change the shift of the demand curve.…

    • 722 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Essay Supply and demand

    • 633 Words
    • 2 Pages

    The force of supply and demand determine the market dynamics. Both the supply and the demand obey to a particular law. The law of supply and demand explains the effect that the availability of a particular good and the desire for that product has on price.…

    • 633 Words
    • 2 Pages
    Good Essays
  • Good Essays

    5. Explain the terms supply, demand, equilibrium price, and competition. How do these forces interact in the American economy?Supply is the number of products that businesses are willing to sell at different prices at a specific time. Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. Equilibrium price is the price at which the number of products businesses are willing to supply equals the number of products consumers are willing to buy at a specific price.…

    • 625 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    A distribution of resources where there are no alternative allocations that keeps all individuals at least as well off but makes even one person better off. When there is an efficient allocation of resources, all members are equal. In Pareto some are better off.…

    • 2499 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Equilibrium The condition that exists when quantity supplied and quantity demanded are equal. At equilibrium, there is no tendency for price to change.…

    • 652 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Jie Ke

    • 2560 Words
    • 11 Pages

    Land (natural resources), Capital (manufactured goods to assist), Labour (mental, physical efforts of people), Entrepreneurship (managerial and decision making skills)…

    • 2560 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Another Ib Ia

    • 863 Words
    • 4 Pages

    Demand and supply are the quantity of a good or service that consumers and producers are willing able to purchase and produce at a given price in a given time period. Equilibrium is a state of rest, self-perpetuating in the absence of outside disturbance. At this price, the quantity demanded equals quantity supplied. Price elasticity of demand (PED) is the responsiveness of demand in change of price of the product of the consumer. Price elasticity of supply (PES) is the responsiveness of supply in changes in price of the product.…

    • 863 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Capital goods – capital goods are those final goods, which are used and help in the…

    • 6884 Words
    • 28 Pages
    Satisfactory Essays
  • Powerful Essays

    Basic Elements of Supply

    • 1209 Words
    • 8 Pages

    Chapter 3 Basic Elements of Supply and Demand Volatile markets Like the weather, markets are always changing, dynamic, unpredictable. As with the weather, careful study of markets also shows certain forces and patterns underneath the daily random movements.…

    • 1209 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Input Prices is the one of the factors changing supply. To produce its output of toy, sellers use various inputs. When the price of inputs rises as increasing the lab testing cost, producing toy is less profitable, and firms supply less toy. If input prices rise substantially, a firm might shut down and supply no toy at all.…

    • 470 Words
    • 2 Pages
    Good Essays

Related Topics