Chapter 2
,Basic concepts in economics
, Scarcity problem
• Economic means: (Labour, capital, natural resources & entrepreneurs).
Remuneration (wages, rent, interest & profit)
• Economic ends: 1) High & sustainable economic growth (economic
growth, GDP), 2) Price stability (inflation rate, purchasing power), 3) High
employment (unemployed, unemployment rate, natural rate of
unemployment), 4 )Balance of payments stability (balance of payments,
current account versus financial account, exports, foreign investment,
foreign currency, foreign exchange, exchange rate), 5) Equitable
distribution of income.
,Basic concepts in economics
, Scarcity problem
• Economic means: (Labour, capital, natural resources & entrepreneurs).
Remuneration (wages, rent, interest & profit)
• Economic ends: 1) High & sustainable economic growth (economic
growth, GDP), 2) Price stability (inflation rate, purchasing power), 3) High
employment (unemployed, unemployment rate, natural rate of
unemployment), 4 )Balance of payments stability (balance of payments,
current account versus financial account, exports, foreign investment,
foreign currency, foreign exchange, exchange rate), 5) Equitable
distribution of income.
