Economics Intro

Economics

Macro- The study of major components of an economy

• Inflation
• Unemployment
• Supply and Demand 
• GDD 

      Micro- study of household and firms make decisions and how they interest in market 

       Positive statement- fact based

                *Ex minimum wage causes unemployment

     Normative statement- describes the world how it should be

      *descriptive

      * Ex  The retirement age should be raised to 70 to combat the effects of our ageing population.

      Wants- more broad 

      Needs- basic requirements 

      Scarcity- basic fundamental economic problem, unlimited wants with the limited resources

                          Qd > Qs

      Goods-  can be bought, sold and produced

      Consumer goods- intended for final use by the consumer 

      Capital goods - items used for creation of other goods such as factory machinery and trucks

      Services- work performed for someone else

Factors of production

• Land(natural resources)

• Capital 

1. Human- Knowledge and skill 
2. Physical- Human made objects used to create other go

• Labor 

• Entrepreneurship