What is the Big Idea?
1. What is economics and how does it affect me?
2. How does scarcity force us to make choices?
3. Can we measure the "cost" of our choices?
4. How does supply and demand inform the choices of consumers and business owners? Why is studying supply and demand useful? 5. What factors affect supply and demand?
6. How are prices determined?
7. What is "money"?
8. What gives money its value?
9. Why can't we just print more currency to solve financial problems?
1. Economics is present in our every day life. It has 3 main ideas “What to produce?”, “How to produce?” and “For whom to produce?” 2. Economic concept of scarcity is about the fact that we can’t do 2 things in the same time. That is why scarcity forces us to make choices. 3. Yes we can, the “cost” of our choices is called “opportunity cost”. 4. “Quantity supplied “and “Quantity demanded” inform consumers and business owners about how they should make choices. Studying supply and demand is useful because you can find the equilibrium price. This is useful when you want to satisfy you and your customers. 5. There are some factors which affects supply and demand. This are: TRIBE (Tastes and preferences, Related good and income, Income, Buyers number, Exaptation of price) and ROTTEN (Resource, Other goods, Taxes subsides and government regulation, Technology, Expatiation of price, Number of firms in the industry). 6. Equilibrium price helps the seller to find the good price. (Equilibrium price is the intercept of supply curve with the demand curve). 7. Money has four functions: Medium of exchange (accepted in exchange for another item), Measure of Value (used to describe the worth of an item), Standard (has a consistent numeral measurement) and Store of Value(holds its value). It has a lot of characteristics like: Divisible, Durable, Portable, and Stable in value, Accepted, Scarce. 8. The numerical measurement and things...
Please join StudyMode to read the full document