Difference between revisions of "Economics"
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*[[Economy]]. The social arrangements that determine what is produced, how it is produced, and for whom it is produced. | *[[Economy]]. The social arrangements that determine what is produced, how it is produced, and for whom it is produced. | ||
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*[[Market]]. An institution that brings together buyers and sellers of goods or services. | *[[Market]]. An institution that brings together buyers and sellers of goods or services. | ||
*[[Market oriented economy]]. An [[economy]] in which most economic decisions are made by buyers and sellers, who may be individuals or firms. | *[[Market oriented economy]]. An [[economy]] in which most economic decisions are made by buyers and sellers, who may be individuals or firms. | ||
Revision as of 13:08, 30 May 2020
Economics is the study of production, distribution, and consumption of goods and services.
Definitions
According to Principles of Economics by Timothy Taylor (3rd edition),
- Economics. The study of production, distribution, and consumption of goods and services.
Key concepts
- Economy. The social arrangements that determine what is produced, how it is produced, and for whom it is produced.
- Market. An institution that brings together buyers and sellers of goods or services.
- Market oriented economy. An economy in which most economic decisions are made by buyers and sellers, who may be individuals or firms.
- Command economy. An economy in which the government either makes or strongly influences most economic decisions.
- Division of labor. Dividing the work required to produce a good or service into tasks performed by different workers.
- Specialization. When a worker or a firm focus on particular tasks in the overall production process for which they are well-suited.
- Economies of scale. When the average cost of producing each individual unit declines as total output increases.
- Globalization. The trend in which buying and selling in markets have increasingly crossed national borders.
- Exports. Goods and services that are produced domestically and sold in another country.
- Imports. Goods and services produced abroad and sold domestically.
- Microeconomics. The branch of economics that focuses on actions of particular actors within the economy, like households, workers, and business firms.
- Macroeconomics. The branch of economics that focuses on the economy as a whole, including issues like growth, unemployment, inflation, and the balance of trade.
- Circular flow diagram. A diagram that illustrates the economy as consisting of households and firms interacting in a goods and services market, a labor market, and a financial capital market.
- Goods and services market. A market in which firms are sellers of what they produce and households are buyers.
- Labor Market. The market in which households sell their labor as workers to businesses or other employers.
- Financial Capital Market. The market in which those who save money provide financial capital and receive a rate of return from those who wish to raise money and pay a rate of return.
