Introducing Economics

Introducing Economics

1. The Economic Problem

   • Scarcity
     • Unlimited Wants
     • Limited Resources
       • Choices
         • Opportunity Cost
           • Next best alternative

2. The Coordination Problem

   • Market Economy
     • Market Forces
   • Centrally Planned Economy
     • State allocation
   • Mixed Economy
     • Price Signals
     • Government direction

3. Factors of Production

   • Labour
     • Human Resource
   • Land
     • Natural Resources
       • Raw Materials
         • Renewables
           • Forests
         • Non-renewables
           • Oil
           • Coal
   • Capital
     • Produced Resources
       • Stock of past production
         • Aid current production
       • Factory Buildings
       • Transport Equipment
       • Machinery
   • Entrepreneurship
     • Human Resource
       • Organises production
       • Identifies projects
       • Bears risk

4. Models and Assumptions

   • Model
     • Simplified respresentation

5. Production Possibility Curve

   • Curve
     • Maximum Combinations
       • Given time
         • Allocated resources
   • On the PPC
     • Full use
       • Efficient
   • In the PPC
     • Unemployment
       • Inefficient
   • Beyond the PPC
     • Unattainable

6. Specialisation

   • Adam Smith
     • Division of Labour
       • More Productive
         • Specialising
           • Stages
   • Greater possibility of trade
   • Gains
     • Differences
       • Opportunity Cost

7. Markets

   • Arrangements
     • Allow Transactions

8. Money and Exchange

   • Barter Economy
     • Inefficient
     • Importance of Money
   • Money
     • Medium of Exchange
     • Store of Valiue
     • Unit of Account
     • Deferred Payment

9. Microeconomics and Macroeconomics

   • Microeconomics
     • Individual decisions
       • Consumers
       • Producers
   • Macroeconmics
     • Interactions
       • Economic Variables
         • Aggregate

10. Positive and Normative Statements

    • Positive Statements
      • What is
    • Normative Statements
      • What ought to be