Economics notes - Scarcity: Not meeting everyone's needs - Incentives: Rewards that encourage behavior or punishments that discourage behavior. (Values usually follow incentives) - Economics: The study of choices made by individuals, firms, and governments in response to scarcity and incentives Social Sciences - Microeconomics: The study of choices made by individuals and firms. The way these options affect the market and government influence. - Macroeconomics: Study of the functioning of national and international economies. (Ask Government what unemployment rates are, what the Bank of Canada can do, etc.) Sums up 2 big questions in the economy: - How do final choices determine what, how, and for whom goods and services are produced? - Choices made for personal satisfaction also strengthen relationships. Goods and Services: Goods that people value and create to meet needs. - Goods - Physical Goods - Services - Jobs for People Joint Ventures Joint ventures work best, but only if they have four partners in common. - Entity - is a commercial enterprise that recruits producers and prepares them to produce and sell goods and services . - Transaction - An arrangement that allows buyers and sellers to receive information and do business with each other. - Property Rights - Real Estate - Finance - Gifts - Money
-Any product or token that is generally accepted as payment. Income Elasticity of Demand: Demand's response to changes in income, other things held constant . Calculated by dividing the percentage of dimensions by the percentage of required products The percentage of required products is less than a percentage at a price. The’s needs are infinitely varied in response. Perfectly inelastic demand for a small price change: demand with zero price elasticity; when the price changes, the quantity demanded remains constant Price Elasticity of Demand: The measure of the elasticity of the quantity demanded of a good to changes in its price, holding all other effects of buyer's plans constant Gross Profit: The total value of the company's sales. It is calculated by multiplying the value of the product numbered by the product sold.