, sustainable economy : (1) Ecological (2) Social
-
(3) Economic
principles
What is economics ? The study of (1) production of goods and services
(2) consumption of goods & services
↓
Economic problems revolve around (1) Issues of scarcity and choice (2) Needs vs Wants
Three Basic Economic Questions :
1) Output : What to produce ?
2) Input
: How to produce ?
3) Distribution :
For whom to produce ?
4 Factors of Production :
1) Land : ·
Natural Resources (renewable or non-renewable) ·
Owners of land earn rent
2) Labour : · Time + effort people give to production idea of human capital or knowledge and skills from
training + experience o owners of labour earn
wages
machines (NOT financial capital) interest
3) Capital tools
buildings Owners of capital
:
o
Instruments . , .
o
earn
4) Entrepreneurship : o
Organises land
,
labour and capital-generates ideas for production ,
bears risks
of decisions Entrepreneurs earn profit
Types of Outputs :
1) Goods 2) services
-Durable :
cars
· Gridges , computers
L Financial : bance ,
insurance
semi-durable :
clothing .
Shoes , tyres
L
personal :
doctor ,
lawyer ,
teacher
Non-durable : food ,
cleaning materials &
Transport and Logistics :
warehousing
L
wholesale and retail :
supermarket
-
(3) Economic
principles
What is economics ? The study of (1) production of goods and services
(2) consumption of goods & services
↓
Economic problems revolve around (1) Issues of scarcity and choice (2) Needs vs Wants
Three Basic Economic Questions :
1) Output : What to produce ?
2) Input
: How to produce ?
3) Distribution :
For whom to produce ?
4 Factors of Production :
1) Land : ·
Natural Resources (renewable or non-renewable) ·
Owners of land earn rent
2) Labour : · Time + effort people give to production idea of human capital or knowledge and skills from
training + experience o owners of labour earn
wages
machines (NOT financial capital) interest
3) Capital tools
buildings Owners of capital
:
o
Instruments . , .
o
earn
4) Entrepreneurship : o
Organises land
,
labour and capital-generates ideas for production ,
bears risks
of decisions Entrepreneurs earn profit
Types of Outputs :
1) Goods 2) services
-Durable :
cars
· Gridges , computers
L Financial : bance ,
insurance
semi-durable :
clothing .
Shoes , tyres
L
personal :
doctor ,
lawyer ,
teacher
Non-durable : food ,
cleaning materials &
Transport and Logistics :
warehousing
L
wholesale and retail :
supermarket
