Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 1: Introduction to Economics - Coggle Diagram
Chapter 1: Introduction to Economics
Definition of Economics
Microeconomic:
is the study of supply and demand and other elements that affect price levels of goods and services that we as individuals use and purchase.
studies individuals, households and businesses’ decisions while considering things like taxes and government legislation.
Macroeconomic:
is the study of the economy as a whole, trying to determine its course and nature.
look at things on a larger scale like a country or state, as opposed to an individual or company.
Is an analytics tool for creating fiscal policy by governments
Economic problems:
Choice>
resources are limited, we cannot say yes to everything.
Opportunity cost
Opportunity cost is the value of the second best thing that you have to let go because you had chosen the best option.
Scarcity>
Scarcity is the condition of having to choose among alternatives.
Factor Of Production (FOP)
Labour
Capital
Land or natural resources
Entrepreneurship
Budget Constraints
To stay within the budget, they need to determine how much to spend on various items and related costs.
A budget constraint is an economic term referring to the combined amount of items people can afford within the amount of income available to them.
Type of Goods:
Private Goods
Public Goods
Economic Goods
Free Goods