applied economics
4 types of economic resources
land labor capital entrepreneur
durable goods are
machineries, equipments
2 types of economics
macro economics micro economics
a division that is conerned with the overall performance of the entire economy
macroeconomics
the innovators
entrepreneur
also known as facts of production
economic resources
are the resources used to produce goods and services
economic resources
soil and natural resources that are found in nature and are not man-made
land
the social science that involves the use of scarce resources to satisfy unlimited wants
economics
the supply is limited
absolute scarcity
man-made resources used in the production of goods and services, which include machineries and equipment
capital
this economy holds true in dictatorial, socialist, and communist nations
comman economy
decisions are imposed on the people who do not have a say in what goods are to be produced
command economy
this is the authoritative system wherein decision-making is centralized in the government or a planning committee.
command economy
2 types of capital
durable goods financial capital
it is about the market for the goods
for whom to produce
is a question on the production method that will be used to produce the goods and services. these refers to the resource mix and technology that will be applied in production
how to produce
the income that the owners of the capital earns
interest
physical and human effort extended in production
labor
decisions are made on what goods and services to produce based on the workings of demand and supply
market economy
people's preferences are reflected in the prices they are willing to pay in the market and are therefore the basis of the producers' decisions on what goods to produce
market economy
this is the most democratic form of economic system
market economy
concerned with the behavior of individual entities such as consumer, the producer, and the resource owner
microeconomics
refers to the value of the best foregone alternative
opportunity cost
when a good is scarce compared to its demand
relative scarcity
payments that owners of the land receive
rent
the reason why people have to practice economics
scarcity
the study of society and how people behave and influence the world around them
social science
economic system that uses methods that are stagnant and therefore not progressive
traditional economy
the decisions are based on traditions and practices upheld over the years and passed on from generation to generation.
traditional economy
the 3 ecoomic systems
traditional economy command economy market economy
they exist in primitive and backward civilizations
traditional societies
refers to the income received by labors
wage
this problem, society must decide what goods and services should be produced in the economy. having decided on the nature of goods that will be produced, the quantity of these goods should also be decided on
what to produce
basic economic problems of society
what to produce and how much how to produce for whom to produce
is economics a social science
yes, because it also studies human behavior
