COMMERCE 1E03 Chapter Notes - Chapter 2: Gross Domestic Product, Communism
Economics: the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. Macroeconomics: the part of economic study that looks at the operation of a nation s economy as a whole. Microeconomics: the part of economic study that looks at the behavior of people and organizations in particular markets. Resource development: the study of how to increase resources and the creation of the conditions that will make better use of those resources (eg. recycling) Invisible hand: a phrase coined by adam smith to describe the process that turns self-directed gain into social and economic benefits for all. Capitalism: an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. Supply: the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.