Economics Basics

Awareness campaigns

________, advertising, pop star appeal, age, and peers can help affect the consumers preferences.

Factor prices

________ increase → cost of production increases → more expensive to produce goods and services → producers have to cut down on production.

Enterprise management

________- what it takes to run a business properly and manage everyone.

Demand

________ is defined as the amount of goods and services consumers are willing and able to buy in a given period of time at a given price, ceteris paribus.

Relative scarcity

________- relationship between wants and resources.

Equilibrium

________- there point where there is no tendency for the leves of income and output to change /Y= O= E.

sense of security

A market must remain stable, which allows the buyers to develop a(n) ________ in their expenditure and spending.

perfect spot

The ________ for supply and demand- where the demand and supply is equal.

opportunity cost

The ________ is the sacrifice you make when you spend money in one manner but another.

consumer

A(n) ________ can not buy something if the prices fluctuate.

ceteris

Supply of a good refers to the amount of a good a producer is willing and able to sell in a given period of time at a given price, ________ paribus.

Qe

________ or Pe- equilibrium quantity, equilibrium price combine to make market equilibrium.

Leakages

________ and injections- money leaving and entering.

Households

________ spend their income on goods and services, and all of the firms provide the ________ with the goods and services.

Humans

________ make decisions based on the facts, and that helps them make a reasonable decision.

Supply

________ can easily be plotted on graphs on which one axis has ________ and the other has cost- this is called a(n) ________ curve.

general public

The amount of goods and services that are able to be purchased by the ________.

Scarcity relative scarcity

________- there is not enough of what we want, so the price goes up.

Capital

________- human capital, people that can do things which makes themselves a wealth.

Circular flow of income

________- the flow of money through an economy.

sector model

Money entering firms from investments is an injection as it is coming back into the original 2 ________.

non price factors

When ________ affect supply, the curve may move right or left depending on the conditions.

Financial sector

________- savings, investments, banks.

Land natural

________- does it require land, natural effects, etc.

Market equilibrium

________ refers to the state of a market that has no tendency to change.

Demand

________- the quantity of a good or service that people are willing and able to purchase for a given price in a given time period.

inflation

2-3% rate normally

spending power of money decreases with inflation, but the costs increase

thats why banks need to use interest rates, employers raises, etc

economics

creates a market to allocates scarce resources

choices must be made

therefore there is an opportunity cost

relative scarcity

relationship between wants and resources

scarcity/relative scarcity

there is not enough of what we want, so the price goes up

land / natural

does it require land, natural effects, etc

labour

who is going to work for you and how much is it going to cost

capital

human capital, people that can do things which makes themselves a wealth

enterprise/management

what it takes to run a business properly and manage everyone

demand

the quantity of a good or service that people are willing and able to purchase for a given price in a given time period

law of demand

as the price decreases, the demand usually increases

normal goods

as income rises, the demand for that product or good will also rise

inferior goods

as the demand for the good decreases and the income increases, the substitutes or replacements for that product will become more popular

substitutes

for example, the price of chicken lowers, the demand for beef lowers too

tastes

the populations preferences may change

circular flow of income

the flow of money through an economy

equilibrium

there point where there is no tendency for the leves of income and output to change / Y = O = E

financial sector

savings, investments, banks

leakages and injections

money leaving and entering

the government takes the peoples money, and then spends it on things that are necessary for everyone

publics goods (education, hospitals, toilets, roads

new injections from firms

exports

new leakages from households

imports

ceteris paribus

all things remain constant

a complement is a product that must be used at the same time wiht a different goods to satisfy the human want

for example, coffee and sugar, toothpaste and toothbrush

number of reasons

interest, expertise, wanting to make a profit

revenue

costs = profit

supply can easily be plotted on graphs on which one axis has supply and the other has cost

this is called a supply curve

demand curve

the demand that was plotted on a graph

the perfect spot for supply and demand

where the demand and supply is equal

equilibrium

income = output = expenditure

factor prices refers to the price of the prices of production

e.g

wages, rent, technology/puts the cost in the in the "revenue

cost = profit"

Qe or Pe

equilibrium quantity, equilibrium price combine to make market equilibrium

equilibrium refers to a position of balance

it is a position from which there is no inherent tendency to move away from

when equilibrium price =/= market price

disequilibrium

marked forces of demand and supplyu will tend to move price towards equilibrium

price mechanism