Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Business cycle wikipedia , lookup
Nominal rigidity wikipedia , lookup
Participatory economics wikipedia , lookup
Criticisms of socialism wikipedia , lookup
Post–World War II economic expansion wikipedia , lookup
Steady-state economy wikipedia , lookup
Economic calculation problem wikipedia , lookup
Economic democracy wikipedia , lookup
dr Magdalena Klimczuk-Kochańska Word economics comes from two ancient Greek words: Oikos – house Nomos – law, rule Economics is the science that studies how people use the resources which are at their disposal in order to meet the different tangible and intangible needs. Economics is a science that investigates how the economy can cope with the problem of scarcity of resources in opposition to infinity of needs. Economics - a science that studies behavior of economic entity in the use of limited resources, which can be used in various ways in the sphere of production, distribution, exchange and consumption. The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units - that is, business firms and households. The branch of economics that examines the economic behavior of aggregates - income, employment, output, and so on - on a national scale. DIVISION OF ECONOMICS Microeconomics Macroeconomics PRODUCTION PRICES INCOME EMPLOYMENT Production/output in individual industries and businesses Price of individual goods and services Distribution of income and wealth Employment by individual businesses and industries How much steel How much office space How many cars Price of medical care Price of gasoline Food prices Apartment rents Wages in the auto industry Minimum wage Executive salaries Poverty Jobs in the steel industry Number of employees in a firm Number of accountants National production/output Aggregate price level National income Employment and unemployment in the economy Total industrial output Gross domestic product Growth of output Consumer prices Producer prices Rate of inflation Total wages and salaries Total corporate profits Total number of jobs Unemployment rate Need – is the state of lack and desire to satisfy them. Man suffers multiple needs, which he attempts to satisfy. 1) criterion for the genesis of needs: primary needs - determined by the structure of a phisical organism, determine the conditions necessary to keep the body alive, secondary needs determined by the mental structure of an individual (social, psychogenic, education, cultural needs). 2) validity criterion – eg. Maslow's hierarchy of needs Goods and services which we purchase have a positive value because they satisfy our needs. People have unlimited wants Good is a material means of satisfying human needs. Free good Economic good Consumer good Production good Private good Public good Services - do not take physical form and can not be stored. Issue / factor of production - the good or service is used by companies to run their manufacturing processes. We can distinguish main groups of resources: 1. 2. 3. 4. 5. Human resources Natural resources Capital resources Enterpreneurship Technology • • • • Each agent receives its employee salary: employment of work – wage, salary employment of land - a product, lease, rent employment of capital – percentage entrepreneurship - high wages, make a profits Scarcity – not having an unlimited amount of something Scarcity is not a shortage and it is not the same thing as poverty Rarity - refers to a situation in which available resources for production not sufficient to meet the needs of the society. Rarity is the result of scarcity of resources. Management - constant choices made by economic untis. • • Decision - the act of choice - conscious or not - between alternative methods. Economic decision has two aspects: positive - make a choice that economic goals will be achived what resources they devoted to achieving – benefits negative - the resignation of other purposes for which we would have to allocate same of the available resources - costs What good is to be produced and in what quantities? How this good should be produced? For whom is the good to be made? When this good should be produced? Efficiency Equity Growth Stability Limited resources and unlimited wants Scarcity Choices Opportunity Cost