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ECON PLAYLIST NOTES
All people have unlimited wants, different needs and interests but limited resources
Economics- the study of how people use their scarce resources in order to fulfil their unlimited wants
Sacristy exists when there is not enough of something (product, service, resource) to fulfil everyone’s wants at a zero price
Rational self interests – considering pros/cons, risks, means to purchase to make decision/choice
(all decisions are rationally self interested to each individuals)
Resources- Land(natural)/Labour(human service)/capital/entrepreneurial ability
Economic capital – anything that is manufactured (machinery & equipment & roads)
Not all capital is money
Financial capital = money
Micro-economics = decision of 1 entity, 1 product, 1 business, 1 industry
Marco-economics = country’s income(gdp), all prices are inflation, business sector (all businesses), unemployment across whole country
The price mechanism:
Shortages arise when demand exceeds supply, which will cause prices to rise.
Surpluses arise when supply exceeds demand, which will cause prices to fall.
The price, where demand equals supply, is called equilibrium price.
Week 1- Economic Issues, Marketing demand, supply analysis
Macroeconomic issues
Managing demand and supply aggregates
Encouraging national economic growth
Minimising inflation
Managing the balance of trade
Managing cyclical economic fluctuations
Minimising unemployment
Microeconomic issues
The choices to be made: what to produce? how to produce? for whom to produce?
The concept of opportunity cost
Making rational decisions
Marginal benefits vs marginal costs
The social implications of choice
Command economy
Decision maker: the central authorities the allocation of resources between current consumption and investment for the future. the output of each industry and firm, the techniques that will be used and the labour and other resources required by each industry and firm.
the
All people have unlimited wants, different needs and interests but limited resources
Economics- the study of how people use their scarce resources in order to fulfil their unlimited wants
Sacristy exists when there is not enough of something (product, service, resource) to fulfil everyone’s wants at a zero price
Rational self interests – considering pros/cons, risks, means to purchase to make decision/choice
(all decisions are rationally self interested to each individuals)
Resources- Land(natural)/Labour(human service)/capital/entrepreneurial ability
Economic capital – anything that is manufactured (machinery & equipment & roads)
Not all capital is money
Financial capital = money
Micro-economics = decision of 1 entity, 1 product, 1 business, 1 industry
Marco-economics = country’s income(gdp), all prices are inflation, business sector (all businesses), unemployment across whole country
The price mechanism:
Shortages arise when demand exceeds supply, which will cause prices to rise.
Surpluses arise when supply exceeds demand, which will cause prices to fall.
The price, where demand equals supply, is called equilibrium price.
Week 1- Economic Issues, Marketing demand, supply analysis
Macroeconomic issues
Managing demand and supply aggregates
Encouraging national economic growth
Minimising inflation
Managing the balance of trade
Managing cyclical economic fluctuations
Minimising unemployment
Microeconomic issues
The choices to be made: what to produce? how to produce? for whom to produce?
The concept of opportunity cost
Making rational decisions
Marginal benefits vs marginal costs
The social implications of choice
Command economy
Decision maker: the central authorities the allocation of resources between current consumption and investment for the future. the output of each industry and firm, the techniques that will be used and the labour and other resources required by each industry and firm.
the