Economics chapter 1

facilities

the lack of facilities make ppl NOT travel to your location

attractions

the presence of attractions make ppl travel to your location

meetings,incentives,conferences/conventions,events/exhibitions

MICE

economics

the study of social behavior which applies reasoning and analytical methods and tools to explore the material well-being of people

scarcity

resources are finite → we need to choose what to do with our limited resources

opportunity cost

the value of the next best thing you give up when you make a choice

marginal cost

extra cost

marginal benefit

extra benefit

elasticity

how much demand or supply changes when price changes

stable growth,high employment levels,low inflation rates,stable exchange rates between local and foreign currencies

macroeconomic goals

change in the output compared to the preceding year

economic growth

monetary value of the total outputs produced by the residents of an economy,either within the boundaries of the economy or abroad, in a year

GNP definition

monetary value of the total outputs produced within the boundaries of an economy, either by its residents or foreign producers, in a year

GdP definiton

GNP=GDP+Xy-My

GNP formula

C+I+G+(X-M)

GDP formula

A person who is willing and able to work, but cannot secure a job

unemployment

number of unemployed:number of working populationx100

unemplyment rate

number of people who are willing and eglible to work

working population

fiscal policy and monetary policy

Two policies implemented by government:

deficit budget

recession (fiscal policy):

surplus budget

soaring(booming) economy and high inflation:

discretionary adjustment by a government in its level of spending and/or taxation to stabilize macroeconomic performance

fiscal policy definition

government (represented by central bank) may intervene in economic activities by altering the quantity of money that firms and individuals could utilize, and could modify the opportunity cost of money (interest rate) .

monetary policy definition

microeconomic

focus on choices being made by individual consumers and producers, and the interactions in the market give them the most benefit

mesoeconomic

study the behavior of different household

macroeconomic

focus on performance of an economy as a whole,and the factors that may lead to changes in its performance and sustainable growth over time

expansionary monetary policy

recession(monetary policy):

contractionary monetary policy

booming(monetary policy):