Macroeconomics

• Macroeconomics


  The branch of economics that looks at the performance and behaviour of an economy as a whole, rather than at individual markets or businesses
• Macroeconomic factors are economic issues that affect the whole economy
• Macroeconomics


  Studies relationships and connections between one country and another
• Resources


  • Land
  • Labour
  • Capital
• Land


  • Refers to the land on which to place the business, but can be used in economic terms to include the surface of the land
  • Renewable Resources can be used and replaced eg water in a lake
  • Non-renewable Resources can be used once and never again eg coal, oil
• Labour


  • Refers to the human resource of the business, including physical labour and mental labour
  • Essential skills include accepting of changes, being adaptable, being flexible, ability to work in teams, willingness to retrain
• Capital


  • Defined as "wealth which is employed in the creation of further wealth"
  • The element contributed by capitalists - the resource used to purchase non-current assets
• Types of Capital


  • Start-up capital used to start up a business
  • Additional Capital to grow the business with internal/external growth
  • Working capital for day to day operation
  • Fixed capital to acquire fixed assets eg buildings, land, machinery