Division of Economics PDF

DIVISION OF ECNMCS Market demand- sum of indv demand * consump*on Commodity- tangible good * public finance Types of commodity * produc*on- process of producing ^ agricultural...

DIVISION OF ECNMCS Market demand- sum of indv demand * consump*on Commodity- tangible good * public finance Types of commodity * produc*on- process of producing ^ agricultural commodity * distribu*on ^ energy commodity * exchange ^ metal commodity Factors of produc6on ^ livestock commodity - input Demand curve- useful for business -capital{ monetary/ assets } Demand data- org chart -labour{ human resources } Herfindahl hirschman index- measure of market -entrepreneurship index -land{ economic resources } Socioeconomic factors- quality of life Goods and services- output Income- earned amount of money Good- can see and feel (tangible goods) Educa6on- skills and knowledge CLASSIFICATION OF GOODS Occupa6on- type of job * Consumers Goods- ul*mate consump*on Sustainability- mee*ng the needs (toothpaste, bath soap) 3 pillars- economic, environment, social * Essen*al Goods- basic needs (food and medicine) Factors affec6ng business and industry * Capital Goods/ Industrial Goods- produc*on of ^economic condi*on other G and S (buildings , machinery, equipment) ^social environment * Luxury Goods- man may do without(perfume, ^government cakes; chocolate, lux car) ^economic changes * Economic Goods- useful and scarce ^poli*cal changes Service- something done for someone else ^changes in technology Producer- makes/ provide G&S (farmer, barber) ^environmental factors Consumer- someone who use and buy(shopping) Viability- ability to survive Produc6on- producing/ crea*ng goods Distribu6on- marke*ng of G&S Exchange- transferring G&S Consump6on- proper u*liza*on of eco goods Public Finance- ac*vi*es of government Economic resources- factors of produc*on The circular flow model- illustrate flows ^factor market ^household ^public market ^ businesses Produc6on possibili6es fron6er- outcome/ produc*on (consumer goods, capital goods) Opportunity cost- value of things Basic decision problems- consump*on, produc*on, distribu*on, growth over *me 3e's of economics- 1efficiency, 2effec*veness, 3equity Branches of ecnmcs ° posi*ve economics- fact based ° norma*ve economics- based on opinion Demand- wants Individual demand- quan*ty of commodity