TOPIC 1: INTRODUCTION OF ECONOMICS
The Operation of an Economy
- production of goods and services from resources - natural, labour, capital and entrepreneurial resources
- distribution of goods and services
- exchange of goods and services
- provision of income
- provision of employment and quality of life through the business life cycle
- the circular flow of income - individuals, businesses, financial institutions, governments, international trade and financial flows
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)