ES101 Chapter Module 5: Module 5 Notes
9 Sep 2018
School
Department
Course
Professor
Document Summary
Capital and goods and services through the perspective of the economic system. Economic system: social institution through which goods and services are produced, distributed, and consumed to satisfy peoples unlimited wants in the most efficient possible way. Capital: any form of wealth used to sustain a business or produce more wealth. Items made from natural resources with the help of human resources such as tools, machinery, equipment, factories and shipping facilities. Theoretical ideal or model in which buyers (demanders) and sellers (suppliers) freely interact in markets without any government or other interference to make all economic decisions. No one can influence the price at which a good or service sells. All parties have full access to the market and enough information about the beneficial harmful aspects of economic goods and services to make decisions. Supply is represented on the graph measuring how much a producer of any good or service is willing to supply for different prices.
