Applied economics

• Economics is a social science that deals with how individuals organize themselves to distribute scarce resources to create products and services that meet infinite and multiplying desires and needs
• Microeconomics focuses on how individual households, firms, and industries make choices and interact in specific markets
• Macroeconomics deals with the economy as a whole, looking at aggregate prices, production, and income
• Production is the use of inputs to generate output, where inputs are commodities or services used to produce goods and services
• Distribution is the total product distribution by members of society, linked to the issue of for whom goods and services are produced
• Consumption is the use of products or services, marking the final conclusion of economic operations
• Public Finance is concerned with government spending and revenue
• Household Economics involves applying economic principles to improve the functioning of a family
• Business Economics deals with rent, salaries, income, and other economic aspects in the workplace
• National Economics focuses on economic factors that influence a country as a whole, including revenue, spending, and wealth
• International Economics involves economic operations between one country and others, such as trade, tourism, and exchange rates
• Producers are firms that produce goods and services, aiming to maximize the well-being of society
• Consumer goods yield direct satisfaction to consumers, while Capital/Industrial Goods help produce other goods meeting consumer needs
• Essential Goods satisfy basic human needs, while Economic Goods are useful and scarce, requiring payment for use
• Luxury Goods are highly valued goods not necessary for survival, often associated with affluent individuals
• Resources are classified into Land, Labor, Capital, and Entrepreneurship, each with specific characteristics and income sources
• Scarcity is a condition where there is an insufficient amount of resources to fulfill demand
• Opportunity Cost is the cost of the next best alternative foregone when making a decision
• Challenges in the development of products and services include insufficient land and natural resources, unqualified workforce, low equipment, inadequate training of entrepreneurs, and scarcity of great ideas with many competitors in the market
• Importance of Economics lies in the wise production and use of wealth to meet the demands and needs of people
• Economics is a social science that deals with how individuals organize themselves to distribute scarce resources to create products and services that meet infinite and multiplying desires and needs
• Microeconomics focuses on how individual households, firms, and industries make choices and interact in specific markets
• Macroeconomics deals with the economy as a whole, looking at aggregate prices, production, and income
• Production is the use of inputs to generate output, where inputs are commodities or services used to produce goods and services
• Distribution is the total product distribution by members of society, linked to the issue of for whom goods and services are produced
• Consumption is the use of products or services, marking the final conclusion of economic operations
• Public Finance is concerned with government spending and revenue
• Household Economics involves applying economic principles to improve the functioning of a family
• Business Economics deals with rent, salaries, income, and other economic aspects in the workplace
• National Economics focuses on economic factors that influence a country as a whole, including revenue, spending, and wealth
• International Economics involves economic operations between one country and others, such as trade, tourism, and exchange rates
• Economic agents/stakeholders include producers, consumers, and firms who produce goods and services
• Consumer goods yield direct satisfaction to consumers, while Capital/Industrial Goods help produce other goods meeting consumer needs
• Essential Goods satisfy basic human needs, Economic Goods are useful and scarce, and Luxury Goods are highly valued but not necessary
• Resources are classified into Land (soil and natural resources), Labor (physical human involvement), Capital (man-made commodities), and Entrepreneurship (transforms ideas into business)
• Scarcity is a condition where there is an insufficient amount of resources to fulfill demand
• Opportunity Cost is the cost of the next best alternative foregone when making a decision
• Challenges in developing products and services include insufficient land and natural resources, unqualified workforce, low equipment/machines, and inadequate training of entrepreneurs
• Importance of Economics lies in the wise production and use of wealth to meet the demands and needs of people