economics:the study of how to allocate scarcities in the most affective way.
factors of production:1)land 2)labour 3)capital 4)interprise
want are things that we'd like to have without considering if their factors of production are available or not.
the difference between wants and needs is that we can go whithout wants but about needs its almost impossible.
we need natural resources to asnswer our needs, however natural resources are finite,so our require to the economics and study of how to deal with scarcities appears.
economic provides different ways to allocating scarce resources which is known by choices.
nevertheless making choices require things to be sacrificed for the others,economics can also help us to show how efficient choices are and help us with finding the (next)best alternative ,wich is called opportunity cost.
there are lots of contiries around the world which possess rich natural resources to product certain goods.one of the best ways for these conteries to improve their econom is to cocentrate a big region or their whole economy on that narrow range of the goods and services,this is called specialisation.
one of the other approaches to improve economy is division of labour.it means to break down productions into a series of seperate processes.this method can be used to increase output per employee or productivity which is much more greater than when each worker has tasked with producing the whole finished product.
developed economies are economies with a high level of income per head.eveloping economies are economies with relatively less level of income per head.
productive possibility curves are curves that can tell us whether we should produce less goods for the reason of producing more of another good or not.
it can also show us that the quantity of one product has became more capable,so manufactors have the chance to produce more amount of the good in term of suficating the others.
economic growth takes palce where the productive potential of economic changes.
productive potential is the maximum output that an economy is capable of producing.
shifting right(outwards)and left in the productive possibility curve can responsively show increase and decrease in the potential of the economy.
8 months ago