Week 1: Applied Economics 12

Can teach us valuable lessons on how to avoid the recurrence of a negative situation, or at least minimize the impact to review what steps were taken to improve and correct similar situations and continue good strategies to keep the economy flowing in a correct direction.

A branch of knowledge that deals with the production, distribution and consumption of goods and services.

Deals with the economic behavior of the whole economy or its aggregates such as government,business and households.

Deals with the economic behavior of individual units such as the consumers, firms and the owners of the factors of production. It is also known as price theory.

Refers to the process of producing or creating goods needed by the household to satisfy their needs.

This refers to the marketing of goods and services to the different economic outlets for allocation to individual consumers.

This is a process of transferring goods and services to a person or persons in return for something.

These resources consist of free gifts of nature for us which include all-natural resources above, on, and below the ground such as soil, rivers, oceans, lakes, forests,mountains, mineral resources and climate.

Is believed to have started 200 years ago in the writings of two economists such as Jean-Baptiste Say (1767-1832) and John Stuart Mill (1806-1873)

Refers to the tension between our limited resources and our unlimited wants and needs.