1. The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.
2. The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy.
3. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.
4. Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.
5. The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.
6. The European Union (EU) is a politico-economic union of 28 member states that are located primarily in Europe
7. The EU has developed a single market through a standardised system of laws that apply in all member states.
8. EU policies aim to ensure the free movement of people, goods, services, and capital,[17] enact legislation in justice and home affairs, and maintain common policies on trade,[18] agriculture,[19] fisheries, and regional development.
9. Economics is the social science that describes the factors that determine the production, distribution and consumption of goods and services.
10. Microeconomics examines the behavior of basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers.
11. Macroeconomics analyzes the entire economy (meaning aggregated production, consumption, savings, and investment) and issues affecting it, including unemployment of resources (labor, capital, and land), inflation, economic growth, and the public policies that address these issues (monetary, fiscal, and other policies).
12. The ultimate goal of economics is to improve the living conditions of people in their everyday life.
14. Forms include monopoly (in which there is only one seller of a good), duopoly (in which there are only two sellers of a good), oligopoly (in which there are few sellers of a good), monopolistic competition (in which there are many sellers producing highly differentiated goods), monopsony (in which there is only one buyer of a good), and oligopsony (in which there are few buyers of a good). Unlike perfect competition, imperfect competition invariably means market power is unequally distributed.
15. Microeconomics studies individual markets by simplifying the economic system by assuming that activity in the market being analysed does not affect other markets. This method of analysis is known as partial-equilibrium analysis (supply and demand). This method aggregates (the sum of all activity) in only one market.
16. Production is a flow and thus a rate of output per period of time.
17. Opportunity cost refers to the economic cost of production: the value of the next best opportunity foregone.
18. Efficiency is improved if more output is generated without changing inputs, or in other words, the amount of "waste" is reduced.
19. In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph representing production tradeoffs of an economy given fixed resources.
20. It is a graphical representation of the maximal mix of outputs that an economy can achieve using its existing resources to full extent and in the most efficient way.
21. In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services.
22. There are three basic resources or factors of production: land, labour, and capital.
23. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour and capital.
24. Recent usage has distinguished human capital (the stock of knowledge in the labor force) from labor.
25. Entrepreneurship is also sometimes considered a factor of production.
26. Examples cited of such inefficiency include high unemployment during a business-cycle recession or economic organization of a country that discourages full use of resources.
27. Pareto efficiency, or Pareto optimality, is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.
28. An economist is a professional in the social science discipline of economics.
29. A generally accepted interpretation in academia is that an economist is one who has attained a Ph.D. in economics, teaches economic science, and has published literature in a field of economics.
30. Social science is a major category of academic disciplines, concerned with society and the relationships among individuals within a society.
31. The theory of supply and demand is an organizing principle for explaining how prices coordinate the amounts produced and consumed.
32. Any business model innovation shall comply with Economics Theories.
33. The law of demand states that, in general, price and quantity demanded in a given market are inversely related.
34. Supply is the relation between the price of a good and the quantity available for sale at that price.
35. Business Model is built on top of Economics. Economics is the Environment of any business.
36. The goal is to chase supply and demand Equilibrium, not Free Price with high demand and low supply.
37. with income and wealth as the constraints on demand
38. The "Law of Supply" states that, in general, a rise in price leads to an expansion in supply and a fall in price leads to a contraction in supply.
39. The law of demand states that, in general, price and quantity demanded in a given market are inversely related. That is, the higher the price of a product, the less of it people would be prepared to buy (other things unchanged). As the price of a commodity falls, consumers move toward it from relatively more expensive goods (the substitution effect).
40. If there is a true value, people are willing to buy by exchanging the value with Money.
41. Marginalist theory, such as above, describes the consumers as attempting to reach most-preferred positions, subject to income and wealth constraints while producers attempt to maximize profits subject to their own constraints, including demand for goods produced, technology, and the price of inputs.
42. At the point where marginal profit reaches zero, further increases in production of the good stop.
43. Firms combine labour and capital, and can achieve far greater economies of scale (when the average cost per unit declines as more units are produced) than individual market trading.
44. Uncertainty in economics is an unknown prospect of gain or loss, whether quantifiable as risk or not.
45. Game theory is a branch of applied mathematics that considers strategic interactions between agents, one kind of uncertainty.
46. Game theory is "the study of mathematical models of conflict and cooperation between intelligent rational decision-makers."
47. Formal economic modeling began in the 19th century with the use of differential calculus to represent and explain economic behavior, such as utility maximization, an early economic application of mathematical optimization. Economics became more mathematical as a discipline throughout the first half of the 20th century, but introduction of new and generalized techniques in the period around the Second World War, as in game theory, would greatly broaden the use of mathematical formulations in economics
48. The mathematization of economics began in earnest in the 19th century
49. In contract theory and economics, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other.
50. In mathematical economics, the Arrow–Debreu model suggests that under certain economic assumptions (convex preferences, perfect competition, and demand independence) there must be a set of prices such that aggregate supplies will equal aggregate demands for every commodity in the economy.
51. In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product.
52. If economic allocation in any system is not Pareto efficient, there is potential for a Pareto improvement—an increase in Pareto efficiency: through reallocation, improvements can be made to at least one participant's well-being without reducing any other participant's well-being.In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets.
53. In economics and particularly in industrial organization, market power is the ability of a firm to profitably raise the market price of a good or service over marginal cost
54. A firm with total market power can raise prices without losing any customers to competitors.
55. Market participants that have market power are therefore sometimes referred to as "price makers" or "price setters", while those without are sometimes called "price takers".
56. Significant market power occurs when prices exceed marginal cost and long run average cost, so the firm makes economic profits
57. Neoclassical economics is a set of solutions to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.
58. Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior.
59. In economic theory a frictionless market is a financial market without transaction costs.
60. Information asymmetries and incomplete markets may result in economic inefficiency but also a possibility of improving efficiency through market, legal, and regulatory remedies,
61. In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.62. A business, also known as an enterprise or a firm, is an organization involved in the provision of goods, services, or both to consumers.
63. Capitalism is an economic system based on private ownership of the means of production and the creation of goods and services for profit.
64. Analysts divide the stock market itself into market sectors so that shares of companies that are in direct competition are listed alongside each other.
65. The defining features are that people can consume public goods without having to pay for them and that more than one person can consume the good at the same time.
66. In economics, income distribution is how a nation’s total GDP is distributed amongst its population
67. Economic inequality, also known as income inequality, wealth inequality, or the gap between rich and poor is the disparity of any of various measures of economic well-being among individuals in a group, among groups in a population, or among countries
68. In economics, utility is a measure of preferences over some set of goods and services. The concept is an important underpinning of rational choice theory.
Categories:
Microeconomics
Macroeconomics
Mathematical Economics
Behavioral Economics
Corporate Finance
Neoclassical Economics
Markets:
Incomplete Market
Complete Market
Frictionless Market
Capitalist Market
Theories:
1. Theory of Supply and Demand
2. Marginalism Thoery
3. Economies of Scale
4. Pareto Efficiency
5. Rational Choice Theory
Imperfect Competition:
Oligopoly
Monopolistic Competition
Monopsony, Oligopsony
People:
Vilfredo Federico Damaso Pareto (born Wilfried Fritz Pareto; Italian: [vilˈfreːdo paˈreːto]; 15 July 1848 – 19 August 1923) was an Italian engineer, sociologist, economist, political scientist, and philosopher.
Kenneth Joseph "Ken" Arrow (born August 23, 1921) is an American economist, writer, and political theorist. He is the joint winner of the Nobel Memorial Prize in Economics with John Hicks in 1972.
Gary Stanley Becker (December 2, 1930 – May 3, 2014)[1] was an American economist. Nobel Prize winner.
Key: Economist
References:
http://www.investopedia.com/ask/answers/199.asp
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
http://knoema.com/sijweyg/gdp-per-capita-ranking-2015-data-and-charts
http://www.thetoptens.com/high-tech-countries/
https://en.wikipedia.org/wiki/Economics#Theory
https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier
https://en.wikipedia.org/wiki/Factors_of_production
https://en.wikipedia.org/wiki/Marginalism
https://en.wikipedia.org/wiki/Industrial_organization
https://en.wikipedia.org/wiki/Rational_choice_theory
https://en.wikipedia.org/wiki/Capitalism
https://en.wikipedia.org/wiki/Business
https://en.wikipedia.org/wiki/Market_sector
https://en.wikipedia.org/wiki/Lorenz_curve
https://en.wikipedia.org/wiki/Utility
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