Economics Basics

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Awareness campaigns

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

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Factor prices

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

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54 Terms

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Awareness campaigns

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

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Factor prices

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

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Enterprise management

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

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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.

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Relative scarcity

- relationship between wants and resources.

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Equilibrium

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

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sense of security

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

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perfect spot

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

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opportunity cost

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

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consumer

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

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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.

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Qe

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

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Leakages

and injections- money leaving and entering.

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Humans

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

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Supply

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

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general public

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

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Capital

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

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Circular flow of income

- the flow of money through an economy.

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sector model

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

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non price factors

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

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Financial sector

- savings, investments, banks.

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Land natural

- does it require land, natural effects, etc.

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Market equilibrium

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

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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.

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inflation

2-3% rate normally

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

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

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economics

creates a market to allocates scarce resources

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relative scarcity

relationship between wants and resources

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scarcity/relative scarcity

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

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land / natural

does it require land, natural effects, etc

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labour

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

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capital

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

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enterprise/management

what it takes to run a business properly and manage everyone

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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

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law of demand

as the price decreases, the demand usually increases

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normal goods

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

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inferior goods

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

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substitutes

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

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complementary goods

e.g

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tastes

the populations preferences may change

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circular flow of income

the flow of money through an economy

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equilibrium

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

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financial sector

savings, investments, banks

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leakages and injections

money leaving and entering

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new injections from firms

exports

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ceteris paribus

all things remain constant

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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

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revenue

costs = profit

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

this is called a supply curve

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demand curve

the demand that was plotted on a graph

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equilibrium

income = output = expenditure

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Qe or Pe

equilibrium quantity, equilibrium price combine to make market equilibrium

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equilibrium refers to a position of balance

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

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when equilibrium price =/= market price

disequilibrium