Gross national income-It is the total gross
national income of a country divided by its total
production
Semi-skilled labor-Jobs that requires certain
abilities and training beforehand but not
advanced education or a specialized set
Microeconomics-It is the study of decision made
by people and business regarding the allocation
of resources at which they trade goods and
services
Unrelated goods-The vast of majority goods that
are not related to one another
Economic system-It is a particular set of
institutional agreement or arrangement and a
coordinating mechanism to respond to
economizing problem
Production efficiency-It is the production of any
particular mix of goods and services in the least
costly way
Market system-In this system, each participant
act in his/her own self-interest in which
individual and businesses seeks to maximize its
satisfaction or profit through its own decisions
regarding consumption and production
Unlimited wants-It is the desire of consumers to
obtain and use various goods and services that
provide pleasure or satisfaction
It represents the organization of an economy in
simple economic model
Expectation-In newly formed expectation of
higher future prices may cost consumers to buy
now in order to beat anticipated process rises,
thus increasing current demand
Demand curve-The inverse relationship
between prices and quantity demanded or any
product can be represented on simple graph in
which by conversion we measure quantity
demanded on horizontal axis and prices on
vertical axis
Full production-It pertains to all employed
resources that must be used so they provide the
maximum possible satisfaction of our economic
wants
Prices of related goods-a change in the price of
related goods may either increase or decrease
the demand for a product depending on
whether the related goods is substitute or
complement
Gross domestic product-the total output of
goods and services produced by country’s
economy within the country territory and by the
residence
Full employment-It provides suitable jobs for all
citizen who are willing and able to work
Economic freedom-This is a guarantee that
business, workers and consumers have a high
degree of freedom in their economic activities
Factors of production-This is the combination of
land, labor, capital and entrepreneurial ability to
produce goods and services
Equitable distribution of income-It ensures that
no group of citizens faces poverty while most
other enjoy abondance
Sustenance- The basic function of economic
activity therefore is to provide as many people
as possible with the means of overcoming
helplessness and misery arising from lack of
food, shelter and protection.
Demand-It is schedule or a curve that show
various amount of product that consumers are
willing and able to purchase at each series
possible prices during a specific period of time
As the prices rises, quantity supply rises, as the
price fall, quantity supply also falls this
relationship called law of supply
Supply – is a schedule or curve showing the
amounts of a product that producers are willing
and able to make available for sale at each of a
series of possible prices during a specific period.
Demand – is a schedule or a curve that shows
the various amount of a product that consumers
are willing and able to purchase at each of a
series of possible prices during a specific period
of time.
Change in demand- A change in the demand
schedule or, graphically, a shift in the demand
curve
Taxes and Subsidies – Business treat most taxes
as costs. An increase in sales or property taxes
will increase production costs and reduce
supply.
Superior goods, or normal goods- Products
whose demands varies directly with money
income
Inferior goods-Goods whose demand varies
inversely with money income
Economic Development is the development of
economic wealth of countries or regions for
wellbeing of their habitants.
Traditional economics is concerned primarily
with the efficient, least-cost allocation of scarce
productive resources
Self-Esteem- A second universal component of
the good life
Freedom from Servitude- A third and final
universal value that we suggest should
constitute the meaning of development is the
concept of human freedom.
Economic policies are designed to achieve
certain economic goals,
Economic growth – produce more and better
goods and services, or more simply, develop a
higher standard of living.
Economic efficiency – achieve the maximum
fulfillment of wants using the available
productive resources.
Pure capitalism – or laissez-faire capitalism --“laissez-faire” means “let it be,”
Price-level stability – Avoid large upswings and
downswings in the general price level; that is
avoid inflation and deflation
Economic security – Provide for those who are
chronically ill, disabled, laid off, aged, or
otherwise unable to earn minimal levels of
income.
Balance of trade – Seek a reasonable overall
balance with the rest of the world in
international trade and financial transactions.
ECONOMICS – is the study of scarcity and its
implications for the use of resources,
production of goods and services, growth of
production and welfare over time
Demand, Supply and Equilibrium: Prices are
determined by the law of supply and demand.
In a perfectly competitive market, suppliers
offer the same price demanded by consumers.
This creates economic equilibrium.
Economic development- is concerned with the
impact of policies and programs on the
country’s productive potential human resource
development, resource allocation, quality of life
and sectoral growth.
Capital- includes all manufactured aids used in
producing consumer goods and services.
Production Theory: This principle is the study of
how goods and services are created or
manufactured.
Costs of Production: According to this theory,
the price of goods or services is determined by
the cost of the resources used during
production.
Labor Economics: This principle looks at workers
and employers, and tries to understand patterns
of wages, employment, and income.
Macroeconomics is concerned with economywide factors such as inflation, unemployment,
and overall economic growth basically this
Macroeconomics looks at the decisions of
countries and governments.
Society’s economic wants – that is, the
economic wants of its citizens and institutionsare virtually unlimited and insatiable.
Scarce Resources – The second fundamental
fact is that economic resources are limited or
scarce.
Entrepreneurial Ability – there is the special
human resource, distinct from labor
Command System- also known as socialism or
communism. Government owns most property
resources and economic decision making occurs
through a central economic plan.
circular flow diagram. Resources flow from
households to business through the resource
market, and products flow from the business to
the households through the product market.
QUANTITY DEMANDED FORMULA: Qd=x-Yp
Quantity Supply: Qs = x + yP