Economics Reviewer
Economics Reviewer
Economics Reviewer
- came from the greek word “oikos” meaning house and “nomos” whic means household
management.
- Known as political economy.
The Republic – a blueprint for economies where cities are founded on key principles of speacilization
and division and labor
Topics and Rhetoric – viewed exchange as as to satisfy individual and collective wants.
Tableau and Economique – illustrated the circular flow of ggos and services in the economy.
DEFINITION OF ECONOMICS
Economic Good – have value or place like foo, shelter, and clothings.
Free Good – air, water and sunglight
Microeconomics
Maroeconomics
- Entire economy
- Focuses activities of goverment
Adam Smith
- Law of diminishing marginal returns – increasing number of people will drove man to cultivate
even the idle lands to support his necessities in lie.
- Law of comaparative advantage – the counrty benefits more in producing the products with
less production cost than any country.
- Father of macroeconomics
- Goverment plays significant role in maintaining equilibrium in the economy triugh republic
spending and keeping the market prices.
- Law of supply and demand
Karl Marx
- Father of communism
- ‘’das kapital” – contains the teaching of communism.
Scarcity – resources are limited to satisfy the unlimted needs and wants of people
Shortage -