Economics - can dictate the price of a product...

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economics
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Defined How society chooses to employ SCANT resources to produce goods and services and distribute them among various competing groups and individuals
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Macro economics Looks at the operations of a nation’s economy as a whole
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Micro economics Looks at the behavior of people and organizations in particular markets
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Resource development
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Adam Smith Entrepreneurs work to improve their lives; so they develop goods and services to make $; this results in creation of jobs for others Invisible hand: process of turning self- directed gain into social and economic benefits for us all
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Market price Price determined by supply and demand Also known as equilibrium or market clearing price
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Competition within free markets Perfect competition: many sellers; no seller
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Unformatted text preview: can dictate the price of a product (agriculture: apples, etc.). Monopolistic competition: large number of sellers produce similar products that are perceived as different by customers (think brands: computers; candy). Oligopoly: a few sellers dominate the market (cars, airlines - think advertising) Monopoly: one seller for a product. Utility Need to understand Comparisons of key economic systems (fig 2.4 on page 154). GDP Business cycles Fiscal policy (governments efforts to keep the economy stable by increasing or decreasing taxes or government spending; taxation & government spending) Monetary policy (management of the money supply and interest rates)...
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Economics - can dictate the price of a product...

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