Chapter 5: Production, Income and Employment
We will take our first look at production and employment, focusing on two key variables: Gross Domestic Product and Unemployment Rate The nation' s Gross Domestic Product
Total value of all final goods and
What Macroeconomics Tries to Explain
Behavior of individual decision makers and individual markets
Broad outlines of the economy
1. 2. 3.
Economic growth Full employment Stable prices
Chapter 2: Scarcity, Choice and Economic Systems
How do we decide about the cost of a good/service?
Money? Economist: Money is a part of its cost Opportunity Cost: most accurate and complete concept of cost
What is Economics ?
Economics, Scarcity, and Choice
Word "economics" comes from Greek word "oikos" (house) and "nomos" (custom/law)
Rules of hosehold
Social Science, seeks to explain something about society
Supply and Demand
Supply and demand is an economic model
Designed to explain how prices are determined in certain types of markets
Specific location where buying and selling takes place, such as
Supermarket or a flea market
What you will le