From 740def21f927f12ce6b0bd34fe6844c78bb4cf26 Mon Sep 17 00:00:00 2001 From: supaqwerty Date: Tue, 7 Mar 2023 11:23:31 +0800 Subject: [PATCH] vault backup: 2023-03-07 11:23:31 --- content/Economics/Economics.md | 11 ++ content/Economics/Introduction2Economics.md | 149 ++++++++++++++++++++ content/_index.md | 2 +- 3 files changed, 161 insertions(+), 1 deletion(-) create mode 100644 content/Economics/Economics.md create mode 100644 content/Economics/Introduction2Economics.md diff --git a/content/Economics/Economics.md b/content/Economics/Economics.md new file mode 100644 index 000000000..9872f5795 --- /dev/null +++ b/content/Economics/Economics.md @@ -0,0 +1,11 @@ +--- +title: Economics Notes +enableToc: false +--- + +[go back](_index.md) + +Year 11 Notes: + +[Introduction to Economics](Economics/Introduction2Economics.md) + diff --git a/content/Economics/Introduction2Economics.md b/content/Economics/Introduction2Economics.md new file mode 100644 index 000000000..6bef6b70d --- /dev/null +++ b/content/Economics/Introduction2Economics.md @@ -0,0 +1,149 @@ +--- +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** \ No newline at end of file diff --git a/content/_index.md b/content/_index.md index a9cdc62ee..511ffa68f 100644 --- a/content/_index.md +++ b/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