Lektioner J-C. Flashcards
Describe the components of the Economic system?
System= needs firms/business. A circle of 3 actors. only works if there are stuff/inovations to buy/sell.
Households = private economy
Goverments = taxes
Firms = jobs, goods
Push & Pull factor?
Pushing - inovations to the market, makes customer buy them.
Pull - then the market asking/are listened to -> creates a new good/service.
Radical Innovations?
Sustainability-improving innovation require both technologically & radical innovations.
that massively improve the environmental or social performance of goods or production processes.
but dont affect consumer benefits & utility.
Incremental innovation?
incremental innovation can make an important
contribution by improving the eco-efficiency of production processes and environmental performance of goods in
the short term at least to some degree.
3 diffrent systems of economic ?
- Economic system
- Ecologic system
- Social system
= Agenda 2030
J.C definition of the State?
The state provides social security (health care, medicines etc) & use human recurses (even if stressed), states solution is to give a pill ( and to go to private health care to fix the problem) and human keeps work in the broken system/market…
The Market ?
brings toghether buyers & sellers, interact & connect with each other and meets. can be visable or invisilble.
Exchange goods/services, money, knowledge.
Micro level + Economics?
Firms (expenditures, jobs, production) < - > Households (wages, rents, goods, services).
Are analysing behaviours of consumers/producers & how they make dicisions. Also how prices are set and alter over time.
Constraint in a economy?
Utility in a economy?
-Your limitations / your budjett.
- value of your money/budjett.
Meso level in Economy?
The business economy - will help the system to live/work.
2 stakeholders:
Gov= taxes, spending
Banks: savings, loans.
The laws in supply & demand relation?
- If demand increases and supply remains
constant, then market price will increase and
suppliers will be encouraged to increase the
quantity supplied. - If demand decreases and supply remains
constant, then market price will fall and
suppliers will be likely to reduce the quantity
supplied. - If supply increases and demand remains
constant, then market price will fall. - If supply decreases and demand remains
constant, then market price will rise.se pdf..
Market forces?
Market forces = changes in demand and supply.
Diffrent types of competition on a Market?
- Perfect competition = Perfect competition is a situation in which numerous small firms producing identical products compete against each
other in a given industry. Perfect competition leads to firms producing the socially optimal output level at the minimum possible cost per unit. - Monopolistic competition = Monopolistic competition is a situation in which many firms with slightly different products compete. Production costs are above what may be achieved by perfectly competitive firms, but society benefits from the product differentiation.
- Monopoly = monopoly is a market structure in which a market or industry is dominated by a single supplier of a particular good or service. Because monopolies have no competition, they tend to sell goods and services at a higher price and produce below the socially optimal output level.
Cross-Price elasticity of demand?
% change in quantity demanded of X, resulting from a 1% rise in the price of another good/thing.
- Common goods?
Can be used/consumed simultaneously by several people. Can’t exclude non-payers from benefit it. Ex försvar, vägar, radio, fyrar.
Utility?
the value/enjoyment of a good/service and the total satisfaction that a consumer derives from the consumption of any particular good or service. Utility rises as more consumption is done.
Private Goods?
Indivduals need to pay for use of good/service.
Externalties?
Action by a consumer or producer, which affects other producer/consumers, but is not accounted for in the market price.
Macro & Business?
A bigger picture of economy & national/international markert. Analysing patterns / trends for problems like inflation/employment.
GDP?
Gross Domestic Product.
Used as a ecomomy measue, of monetary or market good/services produced, within a countrys boarders. During a specific time period, goes in cycles.
A Macro model?
PESTLE = how a market look, why it looks in a certain way, the factors affecting the market.
A Global Firm are?
Looking at the world as ONE & one market, can get comp. advantage globaly.
Equilibrium?
Puts supply & demand curves together. Gives us E point = market always striving to reach E.
GLOCAL?
“think Local + Global, but are a global firm, are between National - Global typ.
EX: McDonalds - local meat, milk etc.
