Economy 1 Flashcards
What is economics?
Science that studies How to use scarse sources to produce G/S for unlimited wants
How to DISTRIBUTE/TRADE them
What is economy?
It’s the activity
Economy of state…
What is microeconomics?
It studies behavior of individual economic subject of market
===> company, government
What is macroeconomics?
Studies the economy as whole
|__> aggregate market
===>Slovakia…
What is a good?
Something that satisfies needs
Is tangible
What is a service
Something that satisfies needs
Is intangible
How do we divide
TYPOLOGY OF GOODS?
Ac. Ownership
Ac. Necessity
Ac. Availability
Ac. Usage
How do we divide
Ac. Ownership
Private-buying, winning
Public-Provided by STATE
(highway MHD)
Seems free(it’s payed from TAX)
How do we divide
Ac. Necessity
Inevitable-can’t live without
(water food, housing )
Cultural- makes our life better
(cinema, theater)
Luxurious-depends on individual
How do we divide
Ac. Availability
Free- are free to use unlimited(rock..)
Economic- have to pay(limited)
How do we divide
Ac. Usage
Consumption- to be consumed by FINAL costumer
Capital- for further usage(tools, house )
Production factors
Labour-work of people
Land- Place where to work
Capital- product that will be produced
Production process
*Inputs turn into outputs
Input
Process
Output
3 main economic Q
WHAT to produce? Tangible/intangible
HOW to produce? How to make it
FOR whom to produce? Who will be final consumer -connected with segment
Types of economy
Traditional- Solution to 3 eco Q based on traditions/habits
Mixed-based on market -with more state interruptions
