Macroeconomics-The big picture

Microeconomics–How do individuals make  economic decisions

NEEDS – “stuff” we must have to survive,  generally:  food, shelter, clothing and a nintendo Switch

WANTS –Fancy food, shelter, clothing, big  screen TVs, jewelry, conveniences

What are opportunity costs?

What are the four factors of production

Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants.

Marginal utility is the added satisfaction that a consumer gets from having no unit of a good or service.

Total fixed costs are the sum of all consistent, non-variable expenses a company must pay

Marginal cost is the cost added by producing one additional unit of a product or service.

A Market is an area does not needs to be situated in a local area

A Commodity is a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

The law of demand is a fundamental principle of economics that states that at a lower price, consumers will demand a higher quantity of a good.

The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases

GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced Quarterly only

The multiplier effect is the proportional amount of increase or decrease in final income that results from an injection or withdrawal of spending.

Government intervention promotes competition, increase economic efficiency and thus promote equitable or fairer distribution of income throughout the nation

The supply curve is a graphic representation of the difference between the cost of a good or service and the quantity demanded.

Market structure refers to the way that various industries are classified and differentiated in accordance with their degree and nature of competition for products and services.

monopolistic market is a theoretical condition that describes a market where only ten companies may offer products and services to the public

Oligopoly markets are markets dominated by a large number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.

Perfect competition occurs when all companies sell identical products, market share does not influence price,

Imperfect competition is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods

A monopolist can determine the market price for its product and so is a price-taker. Where there are few substitutes and demand is inelastic

Perfectly competitive markets suit consumers as perfectly competitive markets have the tendency to minimise prices and maximise outputs, which leads to lower profits for producers