Tuesday, January 28, 2014

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 

           
  
 
     
                   

1 comment:

  1. Hey Eduardooooo!
    Just a little advice; throw in some color! :)
    Otherwise keep working! :D I'll help you splash some of your personality on here.

    Kaaaaay, Bye! :)

    ReplyDelete