Economics

What is Economics?
Scarcity  The resources we use to produce goods and services are limited.

Economics The study of choices when there is scarcity of resources.

Factors of production
The resources used to produce goods and services; also known as production inputs.

Natural resources  Resources provided by nature and used to produce goods and services.

Labor 

Physical Capital

Human Capital

Entrepreneurship

The Three key Economic Question: What, How, and Who?

The choices made  by individuals, firms, and governments answer three question:

1. What products do we produce?
2. How do we products?
3. Who consumes the products?

ECONOMIC MODELS
 economic model
A simplified representation of an economic environment , often employing a graph.


BRIC

Goldman Sachs argues that the economic potential of Brazil, Russia, India and China is such that they could become among the four most dominant economies by the year 2050. The thesis was proposed by Jim O'Neill, global economist at Goldman Sachs.^[13] These countries encompass over 25% of the world's land coverage and 40% of the world's population and hold a combined GDP (PPP) of 18.486 trillion dollars. On almost every scale, they would be the largest entity on the global stage. These four countries are among the biggest and fastest growing emerging

MACRO
 Inflation
Unemployment
Economic Growth


(STD) Standard of living.
 Macroecomics The study of the nation ecom

Microeconomics  The study of the choices made by households, firms, and government and how these choices affects the markets for goods and services.

MICRO

Households
Firms
Governments

Supply and Demand = Price