Economics distribution of resources; demand and supply

Macro Economics concerned with the overall economy works. It studies such thing as:

Employment
Gross Development Product
Inflation
Economic Growth
Nation

Micro Economics concerned with how supply and demand interact in individual markets
for good and services.

Single Market
Individual Labors
Supply and Demand in Individual Markets
Individual Consumer
Economic Resources

Land natural resources

Labor mental and physical works
Capital made by people that includes machines and equipment that can be used to
produce other goods and services
Intrepreneurship vision

Fields of Economics economics of race and gender

Comparative Economic System

Capitalism - private means of production
Communism public means of production
Socialism public and private ownership of means of production.
Econometrics is the application of statistical and mathematical theories in
economics for the purpose of testing hypothesis and forecasting
future trends.
Economic History seeks to try to understand historical event by appealing to our
knowledge of economic process. dealing with the relationship between economy
Environmental Economics is an area of economics and environment.
Law and Economics what does economic have to do with the law ; it applies
economic theory and method to the practice of law.

Economic Development
Economic Growth is the general increase in the country products and
services output.
Economic Development is a government policy to increase the economy
social welfare and endorsing a stable political
environment.

Industrial Organization a field of economics dealing with the strategic behavior of firms,
regulatory, policy and market competition.
Finance science that describe the management, creation and study of money, banking
credit.
Hoarding market control

Methods of Economics

NORMATIVE
The gov't should provide basic health care
to all citizens. ( because there is no way to
prove whether the govt should provide
health care.

Normative Economics subjective statement

POSITIVE
Positive Economics objective statement
The govt provided Health care increases
1. Create Hypothesis
public expenditures.
2. Gathering of Data
3. Testing
4. Conclusion
5. Recommendation - are objective statements that can be tested, amended
or rejected by referring to the available evidence
- It also deals with the objective explanation and their
testing and rejection of theories.

Market Structure is the configuration of a market or industry, specifically in terms of the

number of firms in the market and the competitiveness of each form.
Market Control is the ability of a firm to determine the price and the quantity of the goods
sold.
Market Deregulation and Privatization are the two examples of government policies with
the goal of inducing competitiveness.

Deregulation entails the lifting of laws that restrict limit specific decision made by
industry
Privatization is a government firm to private administration.

Types of Market Structure

Pure/Perfect Competition
a. Large number of independent sellers
b. Identical/homogenous products exists
c. No single seller or buyer can influence the change in the market price of a
product
d. Firms can enter and leave the market with no significant barriers.
e. Non-price competition like sales promotional packaging are not practiced.
Pre Monopoly
a. There is only one seller or producer
b. Product is unique in the sense that there are no close substitute available.
c. The monopolist is a price maker
d. There are formidable barriers present constitution
e. Advertising in general is used to maintain public relations.
Monopolistic Competition
a. There is a relatively a large of sellers acting independency
b. Products are differentiated
c. There is a limited control of price
d. Entry of new firms in the market is relatively easy
e. Mono price competition is extensity
Oligopoly
a. There are very few firms which dominate the market
b. Goods produced are identical but can be differentiate
c. The collusion among sellers produces a price agreement to promote their own
economic interest.
d. New competitions entrance in the market is difficult.
e. Huge Presence of non price competition schemes
Market Demand and Supply Analysis

Hoarding- holding of goods to make the price higher

Antoine Augustin Cornot - discovered the law of demand

- Drew the first demand
Jules Dupuit executed the first practical application of the demand theory
Dionysus Lardner first worked out the laws of demand and supply and the connection
between the cost of production.

Alfred Marshall published principles of economics

Law of Demand preference and taste
Ceteris Paribus other things being equal

Determinants of Demand
a.
b.
c.
d.
e.
f.

Price of complementary goods

Price of substitute goods
Income
Expected future prices
Population
Taste and preference