What is Economics.docx

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ECON: Economics and Finance
ECON 210

What is Economics? Economics- the study of wealth or how to improve society, The study of wealth is the totality of an individual. Economics is how a society use scarce resources to produce various goods Per Capital income= GDP/Population Maxwell rule- when you are at war kill everyone Scarcity- is the reason why we are here it is a situation where there is less of something that is actually desired which allows every society to answer. what to produce?, how to produce?, whom to produce? Economic Systems Adam Smith father of capitalism-government gets the proceeds. Situation where q country better produce a product over another due to low cost of productions. A product better produce a product over anoter due to low cost of production. John Maynard Keynes father of Socialism or the depression economist Karl Marx father Communism (government rule) Market mechanics of Supply & Demand Factors of production laybor, land, capital, Entrepreneur Factors of payments wages, rent, interest, profit Diagram in note book Economic Problem Production possibility Curve- a curve that measures the amount of reasources available to a specific society. Diagram in notebook The further away society is from the point of origin the more successful the country is. Opportunity Cost- is the best thing you must give up to get it. The cost of something for gone. Diagram in notebook Specialization & Trade The importance among trade among nations-  Producers in both countries benefit from trade exporting their surpluses to respective countries  Consumers in both countries benefit from trade by paying lower prices for commodities.  The world welfare is maximized from trade Diagram in notebook
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