ACCTG 1 Lecture Notes - Lecture 24: Planned Economy, Deductive Reasoning, Inductive Reasoning
Document Summary
Households purchase final goods and services for final consumption and also provide the inputs into production: land, labour and capital. The organisations which buy these factors and use them to produce goods and services are referred to collectively as firms. The economy refers to all the production and exchange activities that take place every day. It exists at different scales: local, national (e. g. the uk), and international (e. g. It exists at different scales: local, national (e. g. the uk), and international (e. g. the eu) Economic activity is how much buying and selling goes on in the economy over a period of time. Economics is the study of how society manages its scarce resources. The management of society"s resources is important because the resources are scarce, so not all goods and services people wish to have can be produced. Efficiency means society gets the most that it can from its scarce resources.
