Economics Notes: General Knowledge PDF

Economics Notes: General Knowledge Introduction to Economics Economics is a social science that studies how individuals, businesses, governments, and societies make choices on allocating resources to satisfy their needs and wants. It is broadly divided into two main branches: Microeconomics and M...

Economics Notes: General Knowledge Introduction to Economics Economics is a social science that studies how individuals, businesses, governments, and societies make choices on allocating resources to satisfy their needs and wants. It is broadly divided into two main branches: Microeconomics and Macroeconomics. Key Concepts in Economics 1. Scarcity: The fundamental economic problem where unlimited wants meet limited resources. 2. Demand and Supply: The relationship between the quantity of goods consumers want to buy and the qu 3. Opportunity Cost: The cost of the next best alternative foregone when making a decision. 4. Market Equilibrium: The point where demand equals supply, determining the price of goods and services 5. Factors of Production: The resources used to produce goods and services, categorized into land, labor, 6. Economic Systems: Types of economies, including capitalist, socialist, and mixed economies. 7. Inflation: The rise in the general level of prices over a period of time, reducing purchasing power. 8. GDP (Gross Domestic Product): The total value of all goods and services produced within a country in a 9. Fiscal Policy: Government decisions on taxation and spending to influence the economy. 10. Monetary Policy: Central bank actions, such as adjusting interest rates and money supply, to control inf Economic Sectors 1. Primary Sector: Involves the extraction of natural resources, such as agriculture, fishing, and mining. 2. Secondary Sector: Involves manufacturing and processing industries that transform raw materials into finished goods. 3. Tertiary Sector: Includes services such as healthcare, education, retail, and entertainment. Conclusion Economics plays a vital role in understanding how resources are allocated, how markets function, and how policies impact economic stability and growth. A basic understanding of economic concepts helps individuals make informed decisions in daily life.