Introduction to Economics

Scarcity
- Limited resources vs. unlimited wants.
- Necessitates choices and trade-offs.
Supply and Demand
- Supply: Quantity of a good that producers are willing to sell at different prices.
- Demand: Quantity of a good that consumers are willing to purchase at different prices.
- Equilibrium: Point where supply equals demand.
Opportunity Cost
- The cost of the next best alternative foregone when making a choice.
Market Structures
- Perfect Competition: Many firms, identical products, free entry and exit.
- Monopoly: Single firm dominates, unique product, high barriers to entry.
- Oligopoly: Few firms, may have differentiated or identical products, interdependent pricing.
Economic Systems
- Capitalism: Private ownership of resources, market-driven.
- Socialism: Public ownership, government-planned economy.
- Mixed Economy: Combination of capitalism and socialism.

Macroeconomics: Study of economy as a whole; focuses on aggregate indicators (GDP, unemployment, inflation).
Microeconomics: Study of individual economic units; focuses on consumer behavior, firm dynamics.

Gross Domestic Product (GDP): Total value of all goods and services produced in a country.
Unemployment Rate: Percentage of the labor force that is jobless and actively seeking employment.
Inflation: Rate at which the general level of prices for goods and services rises.

Fiscal Policy: Government spending and taxation decisions to influence the economy.
Monetary Policy: Central bank actions to control money supply and interest rates.

Trade: Exchange of goods and services between countries.
Exchange Rates: Value of one currency for the purpose of conversion to another.
Balance of Payments: Record of all financial transactions made between a country and the rest of the world.

Classical Economics: Emphasizes free markets and the idea that economies are self-regulating.
Keynesian Economics: Advocates for active government intervention to manage economic cycles.
Monetarism: Focuses on the role of government in controlling the amount of money in circulation.

Economics is a dynamic field that studies decision-making and resource allocation at both individual and societal levels, considering various factors like market behavior and government policies.

Scarcity:
- Limited resources lead to the necessity of making choices and trade-offs.
Supply and Demand:
- Supply: Amount of a good producers are willing to sell at various prices.
- Demand: Amount consumers are willing to buy at different prices.
- Equilibrium: Point at which supply and demand balance each other.
Opportunity Cost:
- Represents the value of the next best alternative sacrificed in a decision-making process.
Market Structures:
- Perfect Competition: Many firms, identical products, easy market entry and exit.
- Monopoly: One firm controls the market, offering a unique product with high entry barriers.
- Oligopoly: Few firms exist, producing either similar or differentiated products with interdependent pricing strategies.
Economic Systems:
- Capitalism: Private ownership and market-driven allocation of resources.
- Socialism: Public ownership with a government-planned economic approach.
- Mixed Economy: Combination of capitalist and socialist elements.

Macroeconomics:
- Analyzes the economy as a whole by focusing on aggregate indicators such as GDP, unemployment, and inflation.
Microeconomics:
- Investigates individual economic units, including consumer behavior and firm operations.

Gross Domestic Product (GDP):
- Total monetary value of all goods and services produced in a nation over a specific period.
Unemployment Rate:
- Proportion of the labor force that is unemployed and actively seeking work.
Inflation:
- Measure of the rate at which the general price levels of goods and services increase over time.

Fiscal Policy:
- Government decisions regarding spending and taxation to influence economic conditions.
Monetary Policy:
- Central bank strategies aimed at managing the money supply and setting interest rates.

Trade:
- The process of exchanging goods and services between countries.
Exchange Rates:
- The value of one currency in relation to another, impacting cross-border trade.
Balance of Payments:
- A comprehensive record of all economic transactions between a country and the rest of the world.

Classical Economics:
- Highlights the efficiency of free markets and the self-regulating nature of economies.
Keynesian Economics:
- Promotes active governmental involvement to smooth out economic cycles.
Monetarism:
- Stresses the importance of controlling the money supply for economic stability.

Intersects with psychology to understand economic decision-making.
Analyzes the effects of emotional, cognitive, and social influences on economic behavior.

Economics is a multifaceted discipline focused on decision-making and resource distribution at both individual and societal levels, factoring in market dynamics and government interventions.