Economics Flashcards
What is economics
Economics is a social science connected with the production, distribution, and consumption of goods and services
Branches of economics
Microeconomics and macroeconomics
Microeconomics
Microeconomics is the study of economics at an individual or firm level.
Macroeconomics
Macroeconomics focuses on issues that affect the economy as a whole.
What is an economy
An economy is the mechanism through which scarce resources are organised for the production of goods and services .
Main groups/ agents in an economy
Household, firm and government
What is household
In economics two assumptions are made about households-the first assumption is that they consume goods and services and the second assumption is that they own the factors of production.
The factor of production
Resources used to produce goods and services-land, labour, capital and entrepreneurship
What is a firm
Firm produce goods and services. To produce goods and services firm buys factor services from household
Government
Government provides the framework of rules and laws for household and firms to operate within and in some economies government id also involved in production.
Some economic terms
Wants, glods and needs
What is a want
Goods and services that individuals desire to own and use
What is needs
Itmes that people require to survive
Goods
Tangible (touchable) items. There different types of goods.
Durable goods
These goods habe a fairly long life
