Yearly Notes PDF

Yearly Notes Microeconomics vs Macroeconomics: A brief overview Microeconomics: Focus: Individual economic units, such as consumers, producers, and firms. Topics: Supply and demand, market structure, pricing, and consumer behaviour. Examples: The impact of a price change on consumer demand for a...

Yearly Notes Microeconomics vs Macroeconomics: A brief overview Microeconomics: Focus: Individual economic units, such as consumers, producers, and firms. Topics: Supply and demand, market structure, pricing, and consumer behaviour. Examples: The impact of a price change on consumer demand for a specific product, the behaviour of a particular company, or the analysis of a specific industry. Macroeconomics: Focus: The overall economy, including national income, inflation, unemployment, and economic growth. Topics: international trade and economic development. Examples: The effects of government spending on the economy, the causes of inflation, or the impact of trade policies on a nation's GDP. Scarcity and Countries with Scarce Resources: Scarcity is a fundamental economic concept that refers to the limited availability of resources compared to unlimited human wants and needs. Countries with Scarce resources: Sub-Saharan Africa: Many countries in this region have limited access to water, arable land, and minerals. Middle East: Countries like Saudi Arabia and Kuwait are heavily reliant on oil, but they also face challenges with water scarcity and other environmental issues. Types of Scarcity: Natural Resource Scarcity: This occurs when there is a shortage of natural resources like minerals, oil, water, or fertile land. Economic Scarcity: This happens when a country lacks the economic resources, such as capital or technology, to produce goods and services. Social Scarcity: This refers to a shortage of social resources, like education, healthcare, or infrastructure. Distribution of Goods: A Global Network: Distribution of goods is the process of moving products from where they are made to where they are needed or consumed. Key Components of Distribution Supply Chain: This is the network of organisations, people, activities, information, and resources involved in creating and delivering a product or service. Transportation: The movement of goods from one location to another, often using trucks, trains, ships, or aeroplanes. Warehousing: The storage of goods in facilities to ensure they are available when needed. Specialization Jobs: A World of Opportunities Specialisation in a job refers to focusing on a specific area of expertise within a broader field. This can lead to increased efficiency, higher quality work, and greater job satisfaction. Here are some examples of specialised jobs across various industries: Technology Software Developer: Specialise in areas like web development, mobile app development, or data science. Cybersecurity Analyst: Focus on protecting computer systems and networks from cyber threats. Circular flow model for Brazil: Key Factors in Brazil's Circular Flow Natural Resources: Brazil is rich in natural resources, such as iron ore, soybeans, and coffee. These resources play a significant role in the country's economy. Agriculture: Agriculture is a major sector of the Brazilian economy, contributing to both domestic consumption and exports. Manufacturing: Brazil has a growing manufacturing sector, particularly in areas like automobiles, aerospace, and electronics. Services: The service sector, including finance, tourism, and healthcare, is also a significant contributor to the Brazilian economy. Government: The government plays a crucial role in the economy, providing public services, regulating industries, and collecting taxes. Private Enterprises Private enterprise, also known as free enterprise or capitalism, is an economic system where businesses and individuals own and control the means of production, distribution, and exchange. Key sectors: Financial Services: London is a global financial centre, home to numerous banks, insurance companies, and investment firms. Manufacturing: The UK has a significant manufacturing sector, producing a wide range of goods, including automobiles, aerospace products, and pharmaceuticals. Retail: The UK has a thriving retail industry, with a mix of multinational chains and independent stores. 5 private enterprises in the United Kingdom Tesco: One of the world's largest supermarket chains, Tesco operates in multiple countries and offers a wide range of grocery products and services. British Airways: A major international airline based in the UK, British Airways serves numerous destinations worldwide. Rolls-Royce: A leading manufacturer of aircraft engines and power systems, Rolls-Royce is known for its high-quality products and innovative technology. GlaxoSmithKline: A global pharmaceutical company headquartered in the UK, GSK develops and manufactures a variety of medicines and vaccines. BP: A multinational oil and gas company, BP is involved in exploration, production, refining, and marketing of petroleum products. Examples of traditional economy of the UK: Agriculture and farming: While modern farming techniques are widely used, traditional methods like subsistence farming and livestock rearing continue to exist, especially in remote areas. Fishing: Coastal communities in the UK still rely on traditional fishing methods, though modern technologies have also been incorporated. Handicrafts and crafts: Traditional crafts like pottery, weaving, and blacksmithing are still practised in some regions, often passed down through generations. Local markets and fairs: These events often feature traditional goods and products, such as handmade crafts and local produce. Glossary Definitions Wants The needs or desires for goods and/or services. Physical wants Wants or needs that are necessary to sustain human life. Psychological wants Wants for those things that are not essential to sustain life. Resources Things used to produce goods and services. Scarcity The fundamental fact of economic life. When wants are greater than our resources. Opportunity cost The benefit of doing one thing rather than another. Goods Concrete, visible things that satisfy human wants, that can be touched, and that last a long period of time. Services Items that satisfy wants, that cannot be touched or seen, and that are consumed at the time of their production. Fluctuate Fluctuate means to change or vary frequently, like the stock prices. Pure command economy Governments, or some other central  controlling body, provides the answers to the three questions. Pure Traditional economy The custom or tradition of the society provides the answers to the three main questions: what, how, and for whom. Pure market economy A pure market economy is a theoretical economic system where the government plays no role in regulating or controlling the economy. Mixed economy A mixed economy is a system that combines elements of both a market economy and a planned economy. Economic inquiry Economic inquiry is like studying how money works. It's about understanding how people buy and sell things, how businesses make money, and how the whole economy grows or shrinks. Bibliography: My Abu Dhabi Salary: ‘I earn Dh10,000 per month running a restaurant’ Capital Resources: Capital resources are man-made assets used in the production of goods and services. Here are five of the most important: Technology: Computers, software, and other technological advancements are essential for modern production processes. They can increase efficiency, reduce costs, and improve quality. Infrastructure: Roads, bridges, railways, and ports are crucial for transporting goods and raw materials. A well-developed infrastructure can facilitate economic growth and development. Machinery and Equipment: Tools, machinery, and equipment are necessary for manufacturing and production. They can automate tasks, improve productivity, and reduce labour costs. Buildings and Facilities: Factories, warehouses, offices, and other buildings provide the physical space needed for production and operations. Financial Capital: Money is a vital capital resource that can be used to invest in new equipment, expand operations, and hire more workers. GDP (Gross domestic product) As of 2023, the GDP of the United Kingdom was approximately $3.3 trillion. This makes it one of the world's largest economies. 5 Leading Human Resources Companies in the United Kingdom Randstad: A global leader in HR services, Randstad offers a wide range of solutions, including recruitment, staffing, and HR consultancy. Hays: Another global HR firm, Hays specialises in recruitment, providing temporary, permanent, and contract staffing solutions. Adecco: A leading provider of HR services, Adecco offers recruitment, staffing, and career development solutions. PageGroup: A global recruitment group, PageGroup operates through its brands Page Executive, Page Personnel, and Michael Page. Reed: A leading UK-based recruitment company, Reed offers a variety of recruitment services, including temporary, permanent, and contract staffing. Trade Agreements The United Kingdom has a wide range of trade agreements with countries around the world. These agreements aim to reduce trade barriers, such as tariffs and quotas, and promote economic growth. Free Trade Agreements: The UK has free trade agreements with a number of countries, including Australia, New Zealand, Canada, Japan, and South Korea. These agreements eliminate tariffs on most goods traded between the UK and the other countries. UK-EU Trade and Cooperation Agreement: This agreement governs the UK's relationship with the European Union after Brexit. It includes provisions on trade in goods and services, tariffs, and regulatory cooperation. 5 Examples of Inadequate Quality Control Inadequate quality control can lead to a variety of problems, from customer dissatisfaction to serious safety hazards. Defective Products: When quality control is lacking, defective products can make their way to the market. This can result in customer complaints, returns, and potential legal issues. Safety Hazards: In industries where safety is critical, such as food production or manufacturing, inadequate quality control can lead to products that pose a risk to consumers. This can result in recalls, injuries, and even fatalities. Brand Damage: A reputation for poor quality can severely damage a brand's image and customer trust. This can lead to lost sales, decreased market share, and long-term financial consequences. Increased Costs: Rework, recalls, and customer service expenses associated with defective products can significantly increase costs for a business. Regulatory Violations: Inadequate quality control can lead to non-compliance with industry standards and regulations. This can result in fines, penalties, and legal action. The United Kingdom is known for producing a variety of high-quality goods. Here are the top 5 items: 1. Cars: The UK has a long history of car manufacturing, and its industry is home to iconic brands like Jaguar, Land Rover, and Aston Martin. 2. Aircraft: The UK is a major player in the global aerospace industry, with companies like Airbus and BAE Systems producing a wide range of aircraft and components. 3. Pharmaceuticals: The UK is a global leader in the pharmaceutical industry, with many world-renowned drug companies headquartered there. 4. Whisky: Scottish whisky is one of the most famous products in the world, with many different brands and styles to choose from. 5. Luxury goods: The UK is home to many luxury brands, including Burberry, Mulberry, and Harrods. These brands produce high-end fashion, accessories, and other luxury items. 5 different types of private property Real Property Personal property Intellectual property Financial property Business property Economics Chapter 1 (2-5): Wants are the needs or desires for goods and/or services. - two different types of wants - Physical wants and Psychological - Physical wants are wants that are necessary for sustaining human life. Ex. food, water, air, clothing, shelter. - These wants are referred to as needs. (useful and needed for your lifestyle) - essential wants vary depending on the business, area, and country your in. Ex. In offices, workers have a dress code they have to follow. - Psychological wants are wants for essentials to sustain life. Ex. exotic foods, fashionable clothing, and AC for the house. - These wants meet your desires (not useful) Resources are things used to produce goods and services. - These include human resources, capital resources, and natural resources. Human resources - skills and efforts of workers Capital resources - factories and machinery Natural resources - forests, land - Another resource available is time More time working = less time for activities and personal services. - Time as a limit too. - Resources never seem to meet our wants. (keep wants achievable) Scarcity is the fundamental fact of economic life. - limited amount of resources —> produce limited amount of goods/services —> meet unlimited human wants - In Economics scarcity is used to relate our wants and our resources. - Scarcity is created when our wants are greater than our resources - Earths resources are limited = not even to satisfy every humans wants Decision Making helps make important decisions for you - Making decisions results in scarcity - This is due to making a choice Opportunity Cost is the benefit lost of doing one thing rather than another. - Opportunity cost = opportunity lost - Every purchase made has opportunity cost - Helps you make the right decision Goods and Services - Goods are concrete things (can be touched, last long period of time) that satisfy human wants - Include essentials like bread and non essentials like diamonds - Services are items that cannot be touched or seen that satisfy human wants - Used/consumed at the time of production like concert tickets - Economy doesn’t just provide goods, it also provides services Economics study in human activities using scarce resources to satisfy wants. - We have constant scarcity due to how many wants greater than our resources we have - RESULTS IN MAKING DECISIONS - Scarcity is the most important concern in economics Economics Chapter 1 (6-9): Decision making process: - Many of our choices are made on the spur of the moment with little consideration Ex. Elena could’ve made her decision on impulse, but she tried to make her decision rationally. - Decision making process becomes more clear when faced with a complex economic problems. Decision-making grid: Summary of Scarcity and Decision Making: Physical wants Psychological wants Food Shoes Shelter Car (Mercedes CLS 63 s) A Family Drivers licence A job Prestige University Air Get my degrees Mastery questions guess: Describe goods and services in extensive detail. Describe and categorise all different types of resources. Chapter 2: National Decision Making Three Major Questions 1. What are we going to produce? 2. How is it to be produced? 3. Who receives how much? How they are answered - Each society has developed its own economic system 3 ways the questions are answered: - Tradition or customs - Government - The market Three model economies: - Pure traditional - Pure command - Pure market Pure Traditional: The custom or tradition of the society provides the answers to the three main questions: what, how, and for whom. Ex. For certain occasions and celebrations we buy gifts. These are part of our customs and traditions. - Pure traditional economy discourages change or growth - The economy of rural areas of developing nations in Africa, Asia, and South America, of Medieval Europe, and of traditional Native communities of North America are similar to this economy. Pure Command Economy: governments, or some other central controlling body, provides the answers to the three questions. Ex. Streets, schools, sidewalks, police stations, and civil defence are of command economy. - Decisions on what to produce in a command economy are made by governments. - Government decides for whom the goods and services will be produced. - Logical choices are made in this economy but for what, how, and for whom to produce to? - Pure command Economy may eliminate unemployment, fairer distribution of income, but it still has problems. - Planning an entire economy can be complex and cause a high risk of mistakes. - Causes opportunity cost Ex. Many people may want an excessive amount of a product (space shuttles) at the cost of automobiles. Pure Market Economy: The actions of the buyers and sellers of goods, services, and resources that direct the economic system. Ex. In Canada citizens require vast amounts of goods and services. Many of these goods and services may take days, weeks, or even months to transit. Most people in Canada don’t worry about when these goods and services come or if they arrive in sufficient numbers. They know it will be there. In Canada no one is in charge of when the needs are met, it is left to the thousands of individuals to meet these needs without a central plan. Chapter 2 (16-19) Basic characteristics of the pure market economy A pure market economy, also known as a laissez-faire economy, is a system where the market, rather than the government, controls the economy. It's based on the principles of supply and demand, with minimal government intervention. Limited Government Intervention: The government plays a minimal role in the economy. Its primary functions are to protect property rights, enforce contracts, and maintain law and order.  Private Ownership of Resources: Individuals and businesses own the means of production, such as land, labour, and capital. Market Forces Determine Prices: Supply and demand determine the prices of goods and services. Producers supply goods and services based on consumer demand. The economy of Canada The Canadian economy is mainly a market economy, but it is influenced by tradition and more importantly the government. Therefore it is called a mixed economy.This means that it combines elements of both a market economy and a planned economy. While the government plays a role in certain areas, such as healthcare and education, it also allows for private enterprise and market competition in many industries. Objectives of the canadian economy: Full employment Stable prices  Balance of trade Economic growth Economic justice Economic freedom Chapter 2 (20-23) Economic Efficiency: The term refers to maximising production of goods and services with limited resources. In a mixed market economy, competition helps weed out inefficient producers, promoting more efficient use of resources. Government Debt and Deficits: Over time, the federal and provincial debt increased significantly in Canada. This growing debt affects the ability of the government to spend and invest in other areas. Conflict among Economic Goals: Economic goals may sometimes conflict with each other. Policies aimed at achieving one goal may compromise another, such as trying to reduce unemployment while causing inflation. Activity 2: Objectives of the Economy: This section encourages students to discuss important economic problems in Canada, rank them in importance, and identify additional objectives.  The Economy of the Former Soviet Union Public Ownership: In the Soviet Union, the state owned land, factories, and the means of production, unlike private ownership in countries like Canada. Private ownership existed for some personal goods, but most industries and services were state-controlled. Central Planning: The Soviet economy followed a system of central planning. The government, through agencies like Gosplan, set production targets and organised resources through Five-Year Plans. Five-Year Plans: These plans helped set economic goals and objectives, with specific production targets for different sectors (industry, farming, etc.). One-year plans, developed from five-year plans, set short-term objectives. Challenges of Central Planning: While central planning coordinated the economy, it lacked flexibility and often led to inefficiencies. The plans were designed to fit the overall goals of the state but sometimes failed to meet the needs of individual consumers or sectors. Revisely https://revisely.com/flashcards/packs/lb61I