In order to make predictions in Economics, we
often make the assumption ceteris paribus
which means all other things remain constant.
Is concerned with the
making of goods.
Is the using up of goods
Is the swapping of goods/service and/or
money for each other.
Are good that are wanted directly
by consumers, they are the end result of
production and manufacturing and are what a
consumer will see on the store shelf.
Clothing, food, automobiles and jewelry are
all examples of consumer goods.
Are goods that are wanted directly by
consumers and will be used up over a long
period of time.
Are goods that are made
for use by producers.
Factors of Production
Is the name given to the inputs used in the
Is the input that
provides the workforce.
Inputs which are man
made, eg. machinery.
Is the inputs which include all
Is the organiser of the other inputs, they
make all the decisions concerning production
and bear all the risk.
The basic economic
When a consumer makes a choice, he will
choose the goods which give him maximum
utility or satisfaction.
The cost of the next best alternative
Or the cost of the next best alternative one
gives up to consume the good