emilights.Com

The field of economic is divided into 2 areas:
- Micro economic
- Macro economic

Macro economic deals with depression, inflation, and others that has overall impact in a country. The rest will be dealt by micro economic

Economics derives its pricnciples from the way people act in material welfare

economic is not everything

statistic can be misleading because it has never be precise

scarcity to satisfy all demand


Three kinds of supply
- very short run
- short run
- long run


law of diminishing returns: marginal cost - marginal revenue = marginal profit.


there is no real competition

demand directs what will be produce

demand = want and able

demand types:
- elastic
- in-elastic

shortage -> demand -> price up -> producer receive more profit -> attracts new producers -> supply up -> price down -> reduce producers -> stability

to profit:
- produce relatively scarce goods/services
- use plentiful resources in making the product


free market: the condition where consumer demand directs economy activity


Services/good done to fulfill self-needs can't be counted in Gnp

CPI = goods + services bought by final consumer, us businesses