Pre-Test Applied Economics

study of economics in relation to real world situations

• Microeconomics

• Macroeconomics

• Econometrics

• Applied economics

the three problems of economics is what to produce, how to produce and ....

• when to produce

• where to produce

• which one to produce

• for whom it will be produced

this is marketing of goods and services to different economic outlets for allocations to individual consumers.

• production

• distribution

• exchange

• consumption

this factor of production is paid in the form of rent or lease.

• land

• labor

• capital

• entrepreneur

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys

• Demand
• Needs
• Wants
• Presents

Wants are...

• desires for things that may or may not be necessities
• desires that can only be obtained by spending money
• are only tangible goods
• are only intangible goods

Economics is...

• the study of how to meet unlimted, competing wants with limited resources
• the study of people and how they spend their money
• the study of how people need to budget their money
• the study of how to meet limited wants with limited resources

The total value of goods and services produced in a country in a year, divided by number in the population

• GNI per capita
• PPP per capita
• GDP per capita
• Production 

Who buys goods or services?

• Producers 
• Consumers 
• Leaders
• Followers

What are needs? 

• Something that grows in nature
• Something that people would like to have
• Something people must have to live
• Something found on the moon