Summary ecs1601 Study guides, Class notes & Summaries

ECS1601 Summary Notes: 100% correct questions, answers, workings, and explanations.

Summary ECS1601 Summarised Study Notes

Summary ECS1601 Summarised Study Notes

ECS1601 EXAM REVISION PACK SUGGESTED SOLUTION FOR 2016 May/June Question 1 a) Money is anything that is generally accepted as payment for goods and services or that is accepted in settlement of debt. o Money is a generally acceptable means of payment o This is because people believe it will be accepted as payment by other people b) Three broad functions of government. o the allocative function, which refers to the role of government in correcting market failure and achieving a more effi...

ECS1601 LATEST SUMMARY. Study Unit 1 Chapter 3 page 41 Interdependence of the major sectors, markets and flows in a mixed economy 3.1 Production, income and spending The three major flows in the economy as a whole: Production Income Spending Production occurs, creates income; and all or part of the income is spent to buy goods and services. Flows Production, income and spending are all flows. They are measured over a period of time. This period must be specified. These are moving pi...

CHAPTER 1: Basic concepts Total production, income and spending in the mixed economy Total production in the economy: GDP = C + I + G + X – Z. Gross domestic expenditure (GDE) refers to total expenditure in the domestic economy by consumers, firms and the government. GDE = C + I + G. The difference between nominal and real values Nominal means “in terms of the name”. The nominal value of something refers to the value that you can see. E.g. the nominal value of your salary refers t...

Flows Production, income and spending are all flows. They are measured over a period of time. This period must be specified. These are moving pictures of the economy. Stocks These are measured at a particular point in time. These are still pictures of the economy. Stocks can only change as a result of flows. Capital stock can only increase if investment is made. Apart from production, income, and spending, the other important economic activity that links the various sectors in the economy...

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