Chart 1 What is economy?

Page 1

ECONOMY

Divided into

MICROECONOMY

MACROECONOMY

is is

is

SOCIAL SCIENCE Study of choices made by individuals and companies

study

Study the performance of the national and global economy

Choices of individuals, business and governments

faces

SHORTAGE

Goods and services are produced

is

Inability to meet our needs Reward that encourages or punishment that discourages an action

Is faced by is

INCENTIVES

Depends of

CHOICE OF ALTERNATIVES AVAILABLE

determine

What?

How?

For whom?


Affected by change in

Marginal cost

Marginal benefit

is

is

Cost of increased in an activity

Benefit arising to increase an activity

Of the income people depends who obtained goods and services

Productive resources

Products and services change according to economic demand

are

Land

Work

Capital

given

Marginal Cost Marginal Benefit

Marginal Cost Marginal Benefit

Is more difficult to be carried out an activity

It is easy or probably undertake an activity

Economic,cultural, technological and political advance

Natural resources we use to produce goods and services

Physical and mental effort dedicated to produce goods and services

Entrepreneuria skills

Tools used to produce goods and services

Human resources that organizes the land, Work and capital.

interests

utilities

rewards rent

salary


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