Download - Muckross Transition Year

Economics
It’s a social science which studies human behaviour.
Individuals, companies and governments make
decisions about the use of their scarce resources.
The scarce resources have alternative uses so choices
must be made.
The Aims of Economics
1. To achieve efficient use of resources.
2. To achieve an equitable distribution of wealth.
3. To create stability in an economy.
Microeconomics
• Deals with individual units.
• Eg. consumer, household, firm.
• It deals with supply and demand.
• It shows how many goods will be produced and
consumed at a given market price.
Price
100
Market Equilibrium
80
60
40
20
Demand
Supply
quantity
0
0
100
Trudie Murray ©
200
300
400
500
600
700
800
Perfect Competition
The Law of
Diminishing Marginal Utility
• states that as a consumer consumes
extra units of a good, then at some stage
the marginal utility will decrease.
Oligopoly
4 Factors of Production
• Land
• Labour
• Capital
• Enterprise
The Demand for Labour depends
on...
Macroeconomics
• Is the study of the economic issues at national or
international level.
• National Income
• Role of Government
• Money & Banking
• Inflation
• Unemployment
• Population
• Economic Development....
The circular flow of goods and incomes
Goods and services
£
Consumer
expenditure
Wages, rent
dividends, etc.
£
Services of factors of production (labour, etc)
• Gross Domestic Product
• Gross National Product
2006 HL Q 4 (b)
Reme
mber!
Topical issues
• Industrial relations
• Greece
• Brexit
• President Trump’s economic policy
• Government budgets
• Rent increases
• House prices
Why study economics?
• It is part of our everyday lives.
• It is studied as part of all business courses in third
level.
• May also be in Arts, Management, Engineering,
Construction, Journalism and many other courses.
• Relatively short course
• Good choice of questions in the exam.
Careers in Economics
• Economist
• Journalist
• TV presenter
• Finance & Banking
• Developing Countries
• You'll be pleased to hear economics comes fifth,
only being beaten by Medicine, Dentistry, Chemical
and General Engineering in a survey of earnings in
a recent UK study.