TOPIC 2: CONSUMERS AND BUSINESS
Consumers
- Consumer sovereignty
Patterns of consumer spending and saving/dissaving- variations with income and age
- in the economy as a whole, as income rises the level of saving increases
Factors influencing individual consumer choice- income
- price
- price of substitutes
- price of complements
- preferences/tastes
- advertising
Sources of income- the return for resources: wages, rent, interest and profit
- social welfare
The production of goods and services
WATCH: What are the four Factors of Production? (YouTube clip by RatherUnfortunate)
WATCH: What are the four Factors of Production? (YouTube clip by RatherUnfortunate)
Read some of the basic economic definitions and see if you can figure out the factors of production (needs Flash)
The distribution and exchange of goods and services
READ: Allocating goods and services
Income distribution
READ:
The distribution and exchange of goods and services
READ: Allocating goods and services
Income distribution
READ:
Provision of employment and quality of life through the business cycle
WATCH: Business Cycles (YouTube video by mjmfoodie)
The circular flow of income
READ: Circular flow of income (Wikipedia)
WATCH: Circular flow (note that the figures are from 2008 and therefore quite dated)
READ: Circular flow of income (Wikipedia)
WATCH: Circular flow (note that the figures are from 2008 and therefore quite dated)