economics

needs/wants
services
goods
1. bread
  1. Natural
    1. oil
    2. water
    3. sugar
    4. flour
  2. Labour
    1. baker
    2. pastry cook
  3. Capital
    1. oven
    2. mixer
2. T-shirt
  1. Natural
    1. cotton
    2. wool
    3. fabric
  2. Labour
    1. designer
    2. factory worker
  3. Capital
    1. Jenny
    2. sewing machine
3. Doctors consultation
  1. Natural
    1. cotton
    2. string
  2. Labour
    1. doctor
    2. nurse
  3. Capital
    1. treatment
      1. machine
      2. medicine
    2. band-aid
resourses
1. land
  1. image
2. labour
  1. worker
3. capital
4. enterpreneurial
PPF---Production Possibility Frontier
1. opportunity cost
2. To enlarge the amount of one source
  1. cut the number of another source
  2. add a few quantites for the sum
Equilibrium
1. a market condition that occurs at any price for which the quantity demanded (Qd) and the quantity supplied (Qs) are equal.
Market disequilibrium
1. any market situation where quantities supplied and demanded are not equal. I.e. shortage or a surplus
Price Mechanism
1. the system we have learnt about whereby changes in demand and supply leading to market disequilibrium will lead to suppliers responding by either raising or lowering the price until a new equilibrium quantity is met.
Product markets or Goods markets
1. are where goods and services are traded for money
Factor markets
1. Where factors of production are traded.

Resource summary

	Created by kmwan8 almost 9 years ago