Summary
ECS1501 SUMMARY NOTES
- Institution
- University Of South Africa (Unisa)
A WELL-WRITTEN SUMMARY NOTES FOR ECS1501 MODULE. TRUSTED 100%
[Show more]
Content preview
ECONOMICS 15011: What economics is all about
**Economics is the study of the use of scarce resources to satisfy unlimited wants**
Wants – desires for goods and services - unlimited
Needs – necessities, essential for survival, eg food and water.
Demand – can only demand if you can afford it (purchasing power)
Opportunity cost - value to the decision maker of the best option that could
have been taken but wasn’t, eg watch a movie instead of studying for an exam
Scarcity - time, space and money
Product Possibility Curve (PPC Curve)
Combinations of any 2 goods that are attainable when resources are fully and
efficiently employed (always concave to the origin)
Any point outside the curve (G) - unattainable
Any point on the curve - choice and efficiency
Any point between the points - movement between A and B - opportunity
cost
Any point inside the curve - inefficient but attainable, causes
unemployment
Economics is considered a social science (can predict people)
, Micro-economics and Macro-economics
Micro-economics - individual parts of the economy in isolation
Macro-economics - overall economy
Micro economics Macro economics
Price of single prod Consumer price index, inflation
Changes in price of single product Total output of goods
Decisions of indiv cons and firms Combined outcome of decisions of all cons and firms
Market and demand for indiv goods Market and demand for all goods
Indivs decision whether to work or not Total supply of labour
Firms decision to expand/ export/ import Total supply, exports and imports
Positive and Normative economics
Positive statement - fact
Normative statement - opinion
Levels and rate of change
A small % (say 5%) of a large number (say R10 million) = R 500 000.
A large % (say 90%) of a small number (say R 10) = R9
Deceptive to read into percentages - know what the original base is
Rate of change calculation
Share price goes from R10 to R20 a share, rate of change or profit percentage
End value (R20) – beginning value (R10)
= * 100
Beginning value (R10)
= 100%
2: Closer look at economic problem
3 central economic questions - what, how and for whom
Central economic question 1: What to produce?
1. Consumer goods – consumed by individuals - 3 types
Non–durable goods, i.e. food, meds
Semi-durable goods, i.e. clothing, tyres
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Samkelisiwe3221. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76800 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now