Economics

• What is a economy

  production and consumption in society, involving exchange of good, services for money
• What is economics

  the study of the allocations of scarce and limited resources to stratify unlimited wants
• Economic problem

  what will be produce? How much will be produced?
• Factors of production

  4 FOP including- land, labour, capital, enterprise
• FOP = INCOME RETURN

  Land = labour, labour = wages, capital = interest, enterprise = profit
• Scarcity?

  shortage of an item, there isn’t enough to supply everyone’s need an wants (demands)
• Opportunity cost

  what is forgone when choosing an alternative over another
• Economic agents

  different group involved, interaction ensure good,service able to meet society need/want
• Households

  consumers,own factory of production, provide skill for income. use money for good/service
• Business

  firms.purchase FOP produce good/service, pay income 2household.produce output to consumers
• Business cycle

  Upswing-increasing GDP:boom-highest GDP:downswing-decreasing GDP:recession/bust-lowest GDP