that is Economics ?
The study of choices when there
Scarcity = The resources we use to produce goods
and services are limited. Resources - Factors of Production = What is used
to make goods and sevices to Natural Resources = What is provided by
We also discuss several other topics like Why do we have banks or enterprises?
- nature How are goods and services made ?
• Labor = Human effort (physical & mental)
Capital = Physical capital / Human capital
Stock of equipement,
machienes, Structures and infrastructures.
Knowledge and skills that a worker
We also discuss several other topics like How do we learn gender roles?
Effort used to coordinate factors of production - natural resources labor, physical human Capital & to produce and sell
goods and services.
2 Types of Analysis
Ansevers precise questions - Answers questions that don't involve opinions. that involve a "What is?" / " What will be a
person's judgement or
Topinion on something Ex: - what happens if ...
I therefore the answer - How much is ... il com Ivary. - Where will ... ? : "What ought to be ? We also discuss several other topics like Could plebeians work in the government?
- What do you think ? - What's your opinion on...? If you want to learn more check out What is emperical study?
- Do you think ... ? Economic Model = A Simplified representation of an
economic environment, often
o employing a graph. Ceteris paribus = latin expression, means " all other
variables are held fixed "
Marginal Change = Small, one-whit change in value
Microeconomics a study of the choices made by
households, firms and government, and how these choices offect the markets for goods andor If you want to learn more check out What is law of parismony?
Returms= Qutput will decrease for the same amount of input increase If you want to learn more check out What is haiti’s religion?
Ti 2 3 4 Input
possibilities curve = shows the possible combination of products that an economy can produce, given that its productive resources are fully employed and effectively
Tons of steel per year
• Tons of wheat
Marginal Benefit & An additional benefit
o resulting from a small increase
im some activity. Marginal Cost = The additional cost resulting
from a small increase in some activities
Revenue is higher than cost of #1 ]
- Revenue is smaller than
the cost of i
Marginal Cost production
978---- 150 l 135 ttan
Net Benefit =
Total Benefit - Total Cost
CNB = TC - TB
Slope of TB
A TO Z MB]
A= change in...
i Q = quantity
BTC = Mc
MB; 4 Me
Pt. of equilibrium
IT MB) Mc do more IS MB <me = do less If MB = MC a perfect
To twist Main idea of supply and demand:
Il print 4, then demand & DEMAND Il tlnit , then demand Ą let
Il cost of production 1, supply & Supply If cost of production & Supply & x
Il $1 unit p supply & If a product is valued at more Igo Blunit o, supply & I money, the producere will want
to sell more. SHIFTS of Supply and Dermand curies Semand: Non-price determinants
@ Preferences Tastes & Prome 2 Population
Related Goods 2 Expected Price
suply: Non-price determinants
T @ Resource cost
2 Competition 3 Expected Prices ☺ Technology
اللي مدلها (5)
Point of Equillibrium
Suomet Point of Equillibrium - mikub Suply Demand
ansit utocna to two
Coin do more of the same thing in the same time, or same amount in less time.
caninotet eng noua Opportunity cost = If I produce
how much do give up to make Of vice versa.
a and y.
I have to ly ?
han undatebung - No
a uta tow ewoald Do
Perfectly Competitive Market = A market with
many sellers and buyers of a homogenous product and no barriers to
Quantity demanded = The amount of a product
that a consumer is able and
willing to buy Jemanded Schedule = A table that shows the
recationship between the price of
Only one thing can change Quantity demanded which is price of product. NOTHING else can само
On the other hand many other things can & influence demand (general demand not to be confused with D.D.).
Shift vs Movement Shift = The whole curve shifts Movement = There is movement along the curve, but
the curve doesn't more at all.
Individual demand curve = A curve that
shows the relationship between the
price of a good and quantity demanded by an individual or
consumer, ceteris parabus mand = There is a negative relationship
between price and quantity
demanded, ceteris paribus Quantity supplied The amount of a product
" that firms are willing to and able Soup to sell
redule = A table that shows the
relationship between the price of a product and quantity supplied, ceteris
Individual Supply Curve = A curve showing the
relationship between price and quantity supplied by a single firm, ceteris
paribus Ceteris paribus= "All else is held constant" Law of Supply - There is a positive relationship
between price and quantity
supplied, ceteris paribus. I
Market Supply Curve = A curve showing the
relationship between the market price and quantity supplied by
all firms, ceteris paribus. Market Equillibrium A situation in which
the quantity demanded equals. the quantity supplied at the
prevailing market price Excess Demand (Shortage) = A situation in
which at the preventing prior
the quantity demanded exceeds
the quantity supplied. Excess Supply (Surplus) = A situation in which
the quantity supplied exceeds the
quantity demanded at the prevailing price.