Basic economic Flashcards
What is economics ?
Economics is the study of how individuals, businesses, governments, and societies make choices about how to allocate limited resources to satisfy their unlimited wants and needs. It examines how these entities produce, distribute, and consume goods and services, and how they interact within markets.
What is the market ?
A market is a place or system where buyers and sellers come together to exchange goods, services, or assets. It can be a physical location, like a farmers’ market or a shopping mall, or a virtual one, like an online marketplace. Markets operate based on the principles of supply and demand, where prices are determined by the interaction between what sellers are willing to supply and what buyers are willing to pay.
What is supply and demand ?
Supply and demand are fundamental concepts in economics that describe the relationship between the availability of a product (supply) and the desire for that product (demand). Together, they determine the price of goods and services in a market.
What factors affect to supply?
Prices, income, prices of replacement goods or additional goods, Market demand, interests, expectations
What factors affect to demand ?
Technology, price, production costs, government, expectation
What is The invisible hand ?
Invisible hand is generally a phenomenon that someone for his own benefit but indirectly creates benefits for the community but this it also needs a little intervention of the government
What is Say’s law ?
The supply creates its own demand
Theo quy luật Say, Cung tự tạo ra cầu, Tức là khi mà trên thị trường có nhu cầu, Các nhà máy sẽ tự sản xuất. Đây là một quy luật của thị trường tự nhiên,
