Economics TY Revision Notes Introduction What is

Economics TY Revision Notes

Introduction What is economics? Why do we have money? What determines the cost of the things we buy? n Economics is the study of our market system; it's the study of how people make choices about what they buy, what they produce, and how our market system works. n

n Scarcity l n aren't enough resources to give everyone what they want. Opportunity Costs l is what you had to give up to get what you wanted. See pic Command economy – Gov decides n Market economy - USA n

Market Economy n n n Economic freedom, economic incentives, competition, private ownership, and limited government. Four factors of production are Land, Labour, Capital and Enterprise see pic The Law of Demand l when the price of an item goes down, the demand for it goes up

The Law of Supply n n when the selling price of an item rises, more people will produce the item. Equilibrium Price If both supply and demand curves are drawn on the same graph, the point at which they meet is the "Equilibrium Price". This is the price at which the amount of product demanded is equal to the amount of product supplied l

Elastic vs. Inelastic supply and demand curves n n n inelastic demand – food- always demand inelastic supply - an antique item Gross Domestic Product l n n total value of all goods and services produced in the country Monopolistic; E. g barber shops, restaurants, and book stores An oligopoly is the automobile industry

The category that a product falls into depends on how many people are producing it.

Bonds n Another way that corporations raise money is to sell bonds. When a company sells a bond to a person, they are really borrowing money from that person, with a promise to pay the money back, with interest, at a future date.

The Stock Market Revise for questions 7 mins n http: //www. strom. clemson. edu/b ecker/prtm 320/economics_prim er. html#The Law of Supply n

Questions n n n n n What is economics? Explain supply and demand. What is inelasticity of supply and demand? Discuss bonds. Scarcity and opportunity costs? Factors of production? Equilibrium price? Type of markets? Expand on Market economy – competition etc

Global Economics Organisations IMf n World Bank n WTO n OECD n n In favourites online

IMF Key Functions n n n The IMF supports its membership by providing policy advice to governments and central banks based on analysis of economic trends and crosscountry experiences; research, statistics, forecasts, and analysis based on tracking of global, regional, and individual economies and markets; loans to help countries overcome economic difficulties; concessional loans to help fight poverty in developing countries; and technical assistance and training to help countries improve the management of their economies.

Review Economics by; David Mc Williams- Celebrity Author and Business Post writer. n Morgan Kelly – UCD Irish Times n Why the Celtic tiger went wild. l Discuss Property, Inflation (public sector wages)Galway Tent, Regulators, auctioneers, politicans and Capitalism. l