THEN LY
EC Mies
HL
Alisa VolV:ov/a IfeW ioao-2Z
•VMIAI/ /V/ 11
, - sVucL^ o^r V\ou; soae.+cj alloca^e^ s c o t c h - re^ou-rceA wieet
imUmited an^ neecis
° dear — more, des'vreci, haTcJer ArO ge,t
° of>poHu.n'i-V-tj cost — nex-t beA^: aV-VcY'VNS'Vive tP aVvj d-*-CAS\o\n
0 Posi-Kve ecoY\om\cA> - c.&'ri be proven "brue or -false
° KJorma-tlve exooomicA- carnoV be proven Vme o\o false
FVJNDAMtNTAL QUESTIONS
^ What f pro Auce
1-* HOW to produce
^ Fov* whom to proAuc
:e
ProAucVvon PossitvliVveSi Cut've (PPc)
PPC sWows -Vbe Aiffereof
Comblra^looS Of goods 'and
Services "bbaf can be produced
VjHV\ a given drnounA of
resources in "Vineir Tnosf
good E>
efficient wag
FACTORS OF PRODUCTION
^ IdVTcli ~ na-Vura\ yesouree
Cap\Va\“ goods used -Vo produce oVWr goods and
Services
enVenpriS-C " a person who organises -Vhe.
production proceAS and dances a risVi.
, Clv'Culs.V"' FUk a ; lAo«Ae,l
Stock — iv^poirts
— expOT-Vs
Rea\ GbP = C^l^G + Cx -
C= Consuv>.p-Vioh
I - \VW<2S+VYier)+
G ~ (jov^ spend ing
X - t-X pocis
M = I'm^oV'ts
, I
~ c|uar\V>-V^ cor\sume\rs aire. wv\Vm0 ahc^ atle "Vo pu^cV^ase
2\ pvvce leve\
NON-^Kt bET£RM\NAWTS *
T ~ Wends /preferences
Y ~ income
P - pof>u\a-V\on
P" price ot- yeiaVed opods
E " expectations
R.~ rate of \nteresV
° increase in demand —* Sbit-A CUrv/e to r'^V
o increase in ^uan-tit-^ demanded —> move aiong curve
Lauj of demand ' as dbe price decreases, "EVh
c^uantitit demanded increases
dssuvnpfions
- income etfecA
SUbst-itute efteoV
dirni nisVsing returns
EC Mies
HL
Alisa VolV:ov/a IfeW ioao-2Z
•VMIAI/ /V/ 11
, - sVucL^ o^r V\ou; soae.+cj alloca^e^ s c o t c h - re^ou-rceA wieet
imUmited an^ neecis
° dear — more, des'vreci, haTcJer ArO ge,t
° of>poHu.n'i-V-tj cost — nex-t beA^: aV-VcY'VNS'Vive tP aVvj d-*-CAS\o\n
0 Posi-Kve ecoY\om\cA> - c.&'ri be proven "brue or -false
° KJorma-tlve exooomicA- carnoV be proven Vme o\o false
FVJNDAMtNTAL QUESTIONS
^ What f pro Auce
1-* HOW to produce
^ Fov* whom to proAuc
:e
ProAucVvon PossitvliVveSi Cut've (PPc)
PPC sWows -Vbe Aiffereof
Comblra^looS Of goods 'and
Services "bbaf can be produced
VjHV\ a given drnounA of
resources in "Vineir Tnosf
good E>
efficient wag
FACTORS OF PRODUCTION
^ IdVTcli ~ na-Vura\ yesouree
Cap\Va\“ goods used -Vo produce oVWr goods and
Services
enVenpriS-C " a person who organises -Vhe.
production proceAS and dances a risVi.
, Clv'Culs.V"' FUk a ; lAo«Ae,l
Stock — iv^poirts
— expOT-Vs
Rea\ GbP = C^l^G + Cx -
C= Consuv>.p-Vioh
I - \VW<2S+VYier)+
G ~ (jov^ spend ing
X - t-X pocis
M = I'm^oV'ts
, I
~ c|uar\V>-V^ cor\sume\rs aire. wv\Vm0 ahc^ atle "Vo pu^cV^ase
2\ pvvce leve\
NON-^Kt bET£RM\NAWTS *
T ~ Wends /preferences
Y ~ income
P - pof>u\a-V\on
P" price ot- yeiaVed opods
E " expectations
R.~ rate of \nteresV
° increase in demand —* Sbit-A CUrv/e to r'^V
o increase in ^uan-tit-^ demanded —> move aiong curve
Lauj of demand ' as dbe price decreases, "EVh
c^uantitit demanded increases
dssuvnpfions
- income etfecA
SUbst-itute efteoV
dirni nisVsing returns
