unit 1 introduction Flashcards
THREE important production decisions to allocate resources efficiently.
These are:
What to produce?
capital vs consumers goods
THREE important production decisions to allocate resources efficiently.
These are:
how to produce
Labour intensive vs Capital intensive methods and automation
THREE important production decisions to allocate resources efficiently.
These are:
for whom to produce
the rich ( higher in the income groups or the poor in the poor ( income group )
MICROECONOMICS the production decions
are taken at INDIVIDUAL, HOUSEHOLD OR FIRM LEVEL
MACROECONOMICS the production decions
are taken at COUNTRY, REGION OR GLOBAL LEVEL.
what are the important agent in macroeconmics
government
notional
global policy makers
The total value of all the money earnt, by all sectors in an economy over a period of time, usually one year
notional income
The total value of goods and services produced by all sectors of an economy over a period of time, usually one year.
notional product
The total value of money spent (goods and services purchased by households, firms, and the government) in an economy over a period of time, usually one year.
notional expenditure
The unemployed arethose people able, available, and willing to work and are
unemployed
A general and sustained increase in the level of average prices in an economy over time
inflation
The increase in the production of goods and services produced in an economy, over time
economic growth
The stock of currency (notes and coins) and liquid assets (deposits) in an economy, at a
money supply
A situation in which is free from government intervention and where the forces of demand and supply alone determine prices and output.
free market
Tools that the government uses to manage the economy eg fiscal and monetary policy
government policy
