economics

The economic problem 

Positive, Normative statements 

Choice , Opportunity cost 

Microeconomics , Macroeconomics 

Production possibility frontier 

Public sector 

4 factors of production 

capital , consumer goods 

Specification, consumption, GDP.  

Capitalism, mixed economy , command system. 

price mechanism 

the signalling function , the incentive function

Factors that affect demand

Demand , supply diagram

Reasoning for the law of supply

Equilibrium 

composite demand

Causes for the demand curve to go down

4 factors in price mechanism 

price elasticity of demand

Perfectly elastic 

Elastic demand 

perfectly in elastic

firms use price elasticity of demand to predict

factors determining the price elasticity of a product. 

stakeholder

Factors affecting the elasticity of supply 

Normal goods, luxury goods, necessities , inferior goods.

Income elasticity of demand

Market failure

Main causes of market failure 

Private goods

Public goods 

Quasi- public goods