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content/Economics/Economics.md

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+---
+title: Economics Notes
+enableToc: false
+---
+
+[go back](_index.md)
+
+Year 11 Notes:
+
+[Introduction to Economics](Economics/Introduction2Economics.md)
+

content/Economics/Introduction2Economics.md

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+---
+title: Introduction to Economics
+enableToc: false
+---
+
+[Go back](Economics/Economics.md)
+
+### Macro-economics vs Micro-economics
+
+-   Macro-economics and Micro-economics are 2 of the largest subdivisions of the study of economics
+-   Micro- refers to the observation of small economics units
+    -   Effects of government regulations on individual markets and consumer decision making
+-   Macro- refers to the “big picture” version of economics
+    -   How interest rates are determined
+    -   Why some economics grow faster than others
+
+### Micro-economics
+
+-   Individual markets
+-   Consumers
+-   Producers/firrms
+-   Government
+-   How their actions influence decisions and individual markets
+-   Utility maximisation/satisfaction
+-   Firm production and profit maximisation
+-   Individual market equilibrium
+-   Effects of government regulations on individual markets
+-   Externalities and other side effects
+
+### Macro-economics
+
+-   The big picture
+-   Focuses on aggregate production and consumption in an economy
+    -   Effects of general taxes such as income and sales taxes on output and prices
+    -   Causes of economics upswings and downturns
+    -   Effects of monetary and fiscal policies on economics health
+    -   Effects of, and process for, determining interest rates
+    -   Causes for some economies growing faster than other economies
+    -   Uses GDP **(**Gross Domestic Product: monetary value of all finished goods and services within a give time period**)** and goods and services by their market price
+    -   Inflation, unemployment rate, GDP
+
+### Scarcity
+
+-   We have unlimited wants and limited resources to satisfy those wwants
+-   There is a scarcity of resources
+-   Resources have alternative uses
+
+### Basic Economic Problem (BEP)
+
+-   BEP is every and affects us all
+-   Due to the problem of “relative scarcity”
+    -   Scarcity relative to our wants
+-   Resources may be abundant but wants are unlimited, how are the resources allocated: relative scarcity
+-   Due to scarcity, we are forced to make choices
+-   Resources cannot be used for all human wants
+-   We must choose
+-   ****************************************We have unlimited wants, but there is a scarcity of resources to satisfy those wants. Therefore, a choice must be made.****************************************
+
+### Opportunity Cost
+
+-   When a choice is made, it involves a sacrifice known as an opportunity cost
+-   ********************************************************************************Real cost of the next best alternative forgone******************************************************************************** based on a choice or decision
+-   Usually measured in terms of goods/services or monetary value given up (relative to the alternative course of action)
+
+### Possibility Production Frontier (PPF)
+
+-   Model that demonstrates how opportunity costs arise when individuals or the community makes choices
+-   Shows the various combinations of 2 alternative products that can be produced
+    -   Assuming that:
+        -   Technology is constant/fixed
+        -   There is a fixed quantity of resources
+        -   All resources are used to their fullest capacity
+        -   Economy can only produce 2 goods/services
+-   Points inside the curve are inefficient: resources are not being used to their fullest extent
+-   Points on the curve are attainable, and resources have been used to their fullest extent
+-   Points outside the curve are desirable but unattainable, as we have a scarcity of resources, and our technology is fixed, so we cannot achieve those points
+
+## Free Goods and Economic Goods
+
+### Free Goods
+
+-   Free good is any good that is not scarce
+-   Therefore has no opportunity cost
+-   Not limited by scarcity
+-   Therefore, it includes anything that can be obtained without sacrificing something else
+-   E.g., sunlight
+
+### Economics Goods
+
+-   Any good that is scarce, either because it is a naturally occuring scarce resource:
+    -   Oil
+    -   Gold
+    -   Coal
+    -   Forests/wood
+    -   Lakes/water
+-   OR because it is produced by scarce resources
+-   All economic goods have an opportunity cost lower than 0
+-   ************************2 types of goods that are available free of charge but which do have opportunity costs and are therefore economic goods************************
+    -   Goods provided by the government (paid by tax-payer’s money)
+    -   Certain natural resources that are not owned by anyone are called common pool resources
+        -   Also considered economic goods because they are scarce, and are becoming increasingly scarce due to overuse and depletion
+        -   E.g., clean air, wildlife, lakes, forests, rivers
+
+************************************************************************************************************************************************************A good can be a free good in certain situations and an economic good in others************************************************************************************************************************************************************
+
+-   E.g., oxygen out in the countryside is a free good, but in a crowded room, it becomes an economic good
+
+********************************************************************************************************************************************************Important to distinguish free goods from goods that are available free of charge to their users********************************************************************************************************************************************************
+
+## Basic Economic Questions
+
+-   All economies/countries face scarce resources and unlimited wants
+-   Decisions have to be made regarding the use of resources
+-   So an economy has to have a system to answer the 4 basic economic questions
+    -   What to produce?
+    -   How to produce?
+    -   How much to produce?
+    -   For whom to produce?
+-   Given unlimited wants, but scarce resources, so a choice must be made
+
+## Positive and Normative Concepts
+
+-   Economists think about the economic world in 2 ways
+-   1 way tries to explain how things in the economy actually work
+    -   Positive Concepts
+    -   Based on facts/models
+-   The other deals with how things ought to work
+    -   Normative Concepts
+    -   Based on opinions
+
+### Positive Concepts
+
+-   Positive statements can be true or false
+-   Based on facts and models
+-   Describes how things actually work in the economy
+
+### Normative Concepts
+
+-   Normative statements can only be assessed relative to values, opinions, and judgements
+    -   Cannot be true or false
+
+## 4 Factors of Production (FOP)
+
+-   **********Land:********** Natural resources
+-   ************Labour************: Physical or mental effort used to produce goods/services
+-   **************Capital**************: Artificial **FOP** used to produce goods and services. Goods that make other goods/services
+    -   Physical capital: investment goods
+    -   Investment: spending on capital goods
+-   ********Enterprise********: Skill used to organise all other **FOP**

content/_index.md

@@ -10,7 +10,7 @@ These notes are on Obsidian! You can also ask me on Discord for them!
 Subjects:
 1. [Chemistry](Chemistry/Chemistry.md)
 2. Physics
-3. Economics
+3. [Economics](Economics/Economics.md)
 4. Literature
 5. Methods
 6. Specialist