Ibeconomics Essay

946 Words Nov 6th, 2013 4 Pages
Section 1 social science a science (the pursuit of systematic and formulated knowledge) that is applied to human behaviour economics the study of how people use their limited resources in an attempt to satisfy unlimited wants microeconomics the economics of individual parts or sectors of a national economy macroeconomics the study of features of national economies growth an increase the quantity that an economy is able to produce development an improvement in the living standards of the average person in an economy sustainable development economic development for one generation that will not impact negatively on the living standards of the next generation utility the satisfaction derived from the use of a good or service …show more content…
y of demand the responsiveness of the quantity demanded of one product to a change in price of another good
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income elasticity of demand the responsiveness of the quantity demanded of a product to a change in income (of buyers)
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price elasticity of supply the responsiveness of the quantity supplied of a product to a change in its price
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negative externalities costs to a third party (who takes no part in the decision to produce/consume) caused by the production or consumption of a product [diagram]

Section 3 economic growth an increase in the real output of an economy over time, measured as an increase in real GDP; an increase in the potential output of an economy through an increase in the quantity/quality of resources [diagram] economic development the reduction/elimination of poverty, inequality and unemployment within the context of a growing economy; improvement in the living standards of the average person; the reduction of absolute poverty and an increase in the distribution of basic necessities (such as food, drinking water, shelter)
---an improvement in welfare measured from a number of viewpoints, such as monetary measures, health measures, education measures etc
Gross Domestic Product the total value of all (final) goods and services produced within an economy over a period of time (usually one year) real GDP the total value of a nation’s output generated from resources within its boundaries, over a given period of time, and adjusted

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