ECONOMICS Flashcards
It is a social science means studies of human behaviour.
ECONOMICS
limited resources are allocated to meet the unlimited resources desired by the consumer
ECONOMICS
CREATION OF PRODUCTS OR PROVISION OF SERVICES
RESOURCES
FUNDAMENTAL ECONOMY CHALLENGE. LIMITLESS DESIRED
SCARCITY
WHAT IS THE TWO ECONOMIC BEHAVIOUR?
SELF-INTEREST AND RATIONAL BEHAVIOUR
PURSUING A HIGHER PAYING JOBS OR BETTER WORKING CONDITIONS
SELF-INTEREST
PEOPLE DO THEIR BEST BASED ON THE VALUES AND INFORMATION
RATIONAL BEHAVIOUR
WHAT ARE THE BRANCHES OF ECONOMICS?
MICROECONOMICS AND MACROECONOMICS
DEALS WITH INDIVIDUAL UNITS.
MICROECONOMICS
PRICE THEORY
MICROECONOMICS
DEALS WITH WHOLE ECONOMY
MACROECONOMICS
CENTER OF THE COMPREHENSIVE VIEW OF AN ECONOMY
MACROECONOMICS
FOCUES ON BROAD ISSUES
MACROECONOMICS
AMOUNT OF GOODS AND SERVICES THAT THE CONSUMERS ARE WILLING ANG ABLE TO PURCHASE DESIRELY
DEMAND
AMOUNT OF GOODS AND SERVICES THAT THE CONSUMER ARE WILLING AND ABLE TO PURCHASE IN THE PARTICULAR TIME, PLACE, AND PRICE
QUANTITY DEMAND
WHEN THE PRICE INCREASES THE QUANTITY DEMAND DECREASES (VICE VERSA)
LAW OF DEMAND
JUSTIFICATION FOR THE LAW OF DEMAND
- INCOME EFFECT
- SUBSTITUTE EFFECT
DETERMINANTS OF DEMAND
- INCOME (I)
- PRICE EXPECTATION (PE)
- PRICE OF RELATED PRODUCTS (PR)
- NUMBER OF CONSUMERS (N)
- TASTE AND PREFERENCE (T)
- RANGE OF AVAILABLE GOODS (R)
CHANGE IN INCOME WILL CAUSE A CHANGE IN DEMAND
INCOME (I)
WHAT ARE THE UNDER OF INCOME (I)
NORMAL GOODS (+)
INFERIOR GOODS (-)
BASIC NECESSITIES FOR US TO BE ABLE TO SURIVE
NORMAL GOODS (+)
PEOPLE BUY MORE WHEN THE INCOME INCREASES
NORMAL GOODS (+)