BSB113 Study Guide - Final Guide: National Accounts, Procyclical And Countercyclical, Indirect Tax
Document Summary
At the heart of economics lies the problem of scarcity! The application of rigorous, often mathematical thinking to understand how scarce resources are best used. Tries to understand how scarce resources are used in the real world. Positive vs. normative theory: how are resources used and what is the best way to use resources in the economy. Theory of how to run a business ie. how to improve efficiency by making better use of resources and to make a profit without incurring extra costs. All decision-makers (consumers, firms and gov) want more than is possible ie. demand is larger than what is possible to produce/supply. Issue of scarcity (insufficiency of amount or supply; shortage) All of the groups have infinite needs and only finite resources. People are concerned only for their own interests ie. they look after themselves/their own needs or wants etc. People always care about their material welfare all strive to increase it.
