Economics IGCSE Revision by Soorya Ramesh https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e My Reference en-us 2021-11-30 06:49:38 UTC 2024-01-17 02:33:28 UTC hello@padlet.com https://padlet.net/icons/png/1f30e.png 1.1 - The nature of economics problem sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919729966 Basic economic problem : Scarcity
Scarcity : Unlimited wants VS limited resources ]]> 2021-11-30 06:57:33 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919729966 Economic goods sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919741594 - A product/good that need resources to produce it.
- Limited in supply
- Opportunity cost
- Consumers need to pay for it
- It has opportunity cost


]]> 2021-11-30 07:06:23 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919741594 Free Goods sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919746412 - A product/good that doesn't need resources to produce it. 
- Unlimited in supply
- Consumer don't have to pay for it.
- No opportunity cost

]]> 2021-11-30 07:09:58 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919746412 Needs and wants sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919752678 - Needs are necesssary for consumer's living such as food , house and clothes. 

- Wants are not necessary for consumer's living such as car, jacket and etc

]]> 2021-11-30 07:14:48 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919752678 Consumer goods & Capital Goods sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919758475 - Consumers goods are durable and non-durable which are needed by consumers to fullfill their wants

- Capital goods are manmade such as machines, tools and equipments needed by the firms to increase their productive capacity.

]]> 2021-11-30 07:19:09 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919758475 Merit goods & Dimerit goods sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919766684 Merit goods
- Socially desirable
- Limited in supply
- Positve externalities
- Ex: Apple, books

Dimerit goods
- Non-desirable goods
- Negative externalities
- Unlimited in supply
- Ex: Contraceptive, Drugs

]]> 2021-11-30 07:24:36 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919766684 Private goods and Public goods sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919787707 Private goods
- Goods are supplied by the private sectors.
- Impose charges for the goods
- Non-payers are included

Public goods
- Goods are supplied by the public sector
- Impose cheaper charges or free 
- Non-payers and payers are non-excludable.

]]> 2021-11-30 07:38:19 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919787707 Factors of production sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919796952 C.E.L.L

C - Capital
E - Enterprise
L - Land
L - Labour

]]> 2021-11-30 07:43:50 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919796952 Land sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919802233 - Lands are natural resourses which are used for production
- Ex: Sea, Forest, River
- The reward for land is rent

]]> 2021-11-30 07:47:09 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919802233 Capital sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919807709 - Capital is a manmade items such as machinaries, tools and equipments which are used to produce goods and services
- Reward for capital is Interest.

]]> 2021-11-30 07:50:15 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919807709 Labour sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919809076 - Labours are known as human resources which include mental and physical effort to produce goods and services.
- 2 types of labours : Skilled labours & Unskilled labours.
- Reward for labour is Wages.

]]> 2021-11-30 07:51:04 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919809076 Enterprise sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919821952 - Enterprise combines all the the resources such as, capital, land, and labour.
- Enterpise organizes production, decision making, and bare risk.
-  Reward for enterprise is Profit.

]]> 2021-11-30 07:59:26 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919821952 Mobility of factors sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919825942 Resourses than can be moved from one production activity to another without incuring any loss of output or cost .

]]> 2021-11-30 08:02:07 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919825942 Occupational Mobility & Geographically Mobility sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919828592 Occupationally Mobillity : Ability to move factors between different productive activities.

Geographically Mobility : Ability to move factors of production to a different location.

]]> 2021-11-30 08:03:48 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919828592 Occupationally immobile & Geographically immobile sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919844873 Occupational immobile: When workers are not able to change job due to less qualification or skill.

Geographically immobile: When workers are not able work in different location due to family, commitment or moving home is expensive.

]]> 2021-11-30 08:14:26 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1919844873 Definition sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924546299 Opportunity cost is second best alternative that has been forgive/sacrificed.]]> 2021-12-02 07:25:50 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924546299 Opportunity cost Examples sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924549496 2021-12-02 07:28:05 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924549496 Definition of PPC sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924557926
  • PPC illustrates two different product produced by a country using limited resources and technologies.
  • PPC : Production Possibility Curve
    • ]]>     2021-12-02 07:34:26 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924557926     Production Points sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924570455 Point G
    1. Attainnable 
    2. Wastage happening
    3. Unemployement
    4. Under produced

    Point A,B,C,D,E,F,G
    1. No wastages happening
    2. Full employement
    3. Attainnable 
    4. Resources are fully utillised

    Point H
    1. Unattainnable
    2. Limted resources : C.E.L.L
    ]]>     2021-12-02 07:43:17 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924570455     Inside PPC sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924585589
  • When a country operates inside PPC, it shows that, the production is at attainnable point. There are wastages happening. Resources are not fully utillised as well. 
    • ]]>     2021-12-02 07:53:31 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924585589     Outside PPC sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924591030 When a country operates outside PPC it shows that, the production is at unattainnable point. Limited resources are not used such as C.E.L.L . (SCARCITY)

    -Capital , Enterprise, Land & Labour    ]]>     2021-12-02 07:57:06 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924591030     Shift in PPC sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924597710 2 types of Shifts :

    - Inward Shift =Occurs when there is a decrease in capacity.
    - Outward Shift = Occurs when there is     increase in capacity.]]>     2021-12-02 08:01:24 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924597710     Inward shift sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924605556
  • Limited supply of labour/land due to migration/population
  • Non-renewable resources are depleted.
  • Economy ageing & decaying infrastructure.
  • Capital equipment wears out 
    • ]]>     2021-12-02 08:06:33 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924605556     Outward shift sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924609644
  • New techonologies found
  • Natural resources are discovered
  • More supply of labours
  • Investments on modern businesses.
  • Better education and training.
  • More capital stocks
    • ]]>     2021-12-02 08:09:17 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1924609644     2.1 - Microeconomics & Macroeconomics sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1929084503 2021-12-04 23:35:45 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1929084503 2.1.1 - Microeconomics sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1929099504
  • Is a study of an economic decision and action of an individual conumers, producers and households and how these economic decision makers interact.
    • ]]>     2021-12-05 00:22:59 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1929099504     Macroeconomics sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1929338856
  • Macro means "BIG".
  • It is used in national level.
  • This is often used in national economics.

    • ]]>     2021-12-05 08:54:40 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1929338856     3 Economic Questions sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932556704
  • What to produce?
  • How to produce?
  • Whom to produce?
    • ]]>     2021-12-07 02:27:30 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932556704     What to produce? sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932565716
  • Private sector/Firms have to decide on what are combinations of goods or services to produce to meet customers wants and needs.
    • ]]>     2021-12-07 02:33:12 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932565716     How to produce? sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932596052
  • Firms needs to decide cobination of factors of production to produce goods and services.
  • Firms should decide on how much land, labour and capital needed to produce goods such as car, computers and etc.
    • ]]>     2021-12-07 02:52:22 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932596052     Whom to produce? sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932610380
  • Finally, firms need to decide who will benefit from the output and how much they will get. This will cause a problem in distribution.
    • ]]>     2021-12-07 03:01:42 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932610380     Free Market System sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932633217
  • Actions of an individual consumers, firms or household in private sector determine the allocation of resources.

    • -     NO government interventions
    - Therefore, there's     NO tax or public spending.
    ]]>     2021-12-07 03:17:07 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932633217     Advatages of Free Market System sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932645037
  • A variety of goods and services.
  • Private businesses can earn more profits.
  • There's no taxation.
  • Firms will respond quickly to the change in customers   spendings.
  • Business will produce or improve their product according to the customer's taste.

    • ]]>     2021-12-07 03:25:18 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932645037     Disadvantages of Free Market System sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932658021
  • Business will only produce goods and services that earn high profit to the firm.
  • Harmful goods may be produced/supplied

    • Resources will be only produced if the business is profitable to do so. (Employees & Machinaries)

    • Business will only supply goods to those can afford to pay for the goods and services

    • Producers might ignore the damages/effects occurs to other and the environment due to their decisions. (Pollutions, Sickness & etc)
    ]]>     2021-12-07 03:34:02 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932658021     Price Mechanism sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932674466
  • Price mechanism determines what goods are produced, how they are produced and for whom they are produced in a market economy.
    • ]]>     2021-12-07 03:45:46 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932674466     Definition of Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932860017 Demand is the quantity of products that consumers are 
    - Willing to buy
    - Able to buy
    - At a price
    - Over a period of time     ]]>     2021-12-07 06:40:05 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932860017     Price & Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932861872 2021-12-07 06:41:51 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932861872 Law of demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932865056
  • When price is HIGH, demand will FALL.
  • When price is LOW, demand will INCREASE.
  • The relationship between price and demand is negatively related.
    • ]]>     2021-12-07 06:44:48 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1932865056     Price and Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938009571
  • When the price changes, the quantity demanded will also change.
    • ]]>     2021-12-09 12:13:56 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938009571     Market Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938035332
  • Total demand of all consumers in a market.
    • ]]>     2021-12-09 12:29:14 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938035332     2 Types of demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938050027
  • Movement on the demand diagram.
  • Shift in demand diagram.

    • ]]>     2021-12-09 12:37:38 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938050027     Movement in Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938052221 2021-12-09 12:38:57 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938052221 Factors of changes in demand diagram sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938062523 2021-12-09 12:44:30 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938062523 Outward Shift in Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938089529
  • An increase in consumer's disposable income after tax
  • A fall in the price of a complement.
  • A rise in the price of substitude.
  • Increase in advertising 
  • Rise in the population
    • ]]>     2021-12-09 12:58:11 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938089529     Inward shift in Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938090256
  • A fall in consumer's disposable income after tax
  • A reduction in advertising
  • A fall in the population
  • An increase in the price of complement
  • A fall in the price of subtitude.
    • ]]>     2021-12-09 12:58:31 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1938090256     Definition of Supply sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948719826 Supply is the quantity of a product that suppliers are
    • Willing to sell
    • Able to sell
    • At various price
    • Over a period of time
    ]]>     2021-12-15 06:20:40 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948719826     Law of supply sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948725086
  • When price increases, quantity supplied will also increase
  • When price decreases, quantity supplied will decrease.
  • The relationship between price and quantity supply is positively related.
    • ]]>     2021-12-15 06:26:04 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948725086     Types of Supply sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948735002
  • Individual supply : Supply of one firm/Producer.
  • Market supply : Total supply of the market.
    • ]]>     2021-12-15 06:36:03 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948735002     Supply curve sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948769068 Movement along the supply curve: 
    • Extension on supply
    • A contraction in supply

    Shift in supply curve :
    • Increase in supply curve
    • A fall in supply
    ]]>     2021-12-15 07:05:35 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948769068     Movement along Supply curve sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948785256
  • As the price changes, the quantity supplied will also change.
    • ]]>     2021-12-15 07:17:10 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948785256     Shift in the Supply Curve sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948794722
  • At the same price different quantity is supplied.

    • ]]>     2021-12-15 07:24:40 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948794722     Cost of production sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948801044
  • When COP increase Supply decrease
  • When COP decrease Supply increase

    • COP production may change due to:
    - Wages
    - Raw material
    - Output per worker
    - Transport cost
    - Energy cost (Electricity)
    ]]>     2021-12-15 07:28:58 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948801044     Subsidies sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948806858 When governent gives subsidies:
    • COP decrease QS increase
    When government takes subsidies:
    • COP increase QS decrease

    ]]>     2021-12-15 07:33:27 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1948806858     Market Equilibrium sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951678899 When demand and supply diagram of a product meets at one particular price and quantity.

    • Demand = Supply (Equilibrium)
    • Demand ≠ Supply (Disequilibrium)
    ]]>     2021-12-16 13:16:05 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951678899     Equilibrium sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951681725 2021-12-16 13:17:21 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951681725 Disequilibrium sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951691911
  • Disequilibrium happens when demand and supply doesn't meet at a point.
  • Excess demand & Excess supply.
    • ]]>     2021-12-16 13:21:54 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951691911     Keypoints sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951732265 Excess demand @ shortage:
    • When price of the product is cheaper, therefore quantity demanded by consumers will be more than the firm able to supply. At this point, firms have to increase the price of the product.
    Excess supply @ surplus:
    • When price of the product is expensive, suppliers will supply more. But the quantity demanded by consumers will be lesser. At this point, firms have to decrease the price of the product.
    ]]>     2021-12-16 13:37:35 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951732265     2.9 - Free Market System sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951795391
  • In free market system, all decisions are taken by private sector. There's no intervention of government or public sector. Therefore, there's no taxation or public spending
    • ]]>     2021-12-16 14:00:41 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951795391     Resource allocation sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951846337 What to produce? 
    • Should we use resources to produce many consumer goods and services

    How to produce?
    • What tools and machinery will be needed to manufacture the goods

    Who to produce for?
    • Should they supply the goods and services to people whom are willing to pay for their products.
    ]]>     2021-12-16 14:18:14 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1951846337     Free Market system (Advantages) sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1952098091
  • A wide variety of goods and services are produced to satisfy consumer's wants
  • Firms respond quickly to the change in consumer's spending
  • The profit motive is to encourage firms to develop new products and use an efficient way of production
  • No taxes
    • ]]>     2021-12-16 15:50:19 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1952098091     Free Market System (Disadvantage) sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954754979
  • Firms will only produce goods and services if they are profitable.
  • Firms will only supply goods and services that consumers are willing to pay for them.
  • Resources will only be employed when the business is profitable to do so.
  • Harmful goods will be produced if the business is profitable to do so.
  • Some owners will not care about the harmful effect on the environment due to their activities.
  • Some firms might increase high price due to lack of competition.
    • ]]>     2021-12-18 12:10:20 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954754979     Chapter 2.10 - (Market Failure) sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954797640 Misallocation of resources that causes negative externalities to the environment
    • Social Cost
    • Private Cost
    • Social Benefit
    • Private Benefit
    ]]>     2021-12-18 13:23:47 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954797640     Positive externalities (Environment) sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954803080
  • Consuming and producing causes a positive externalities to the third party.
  • Example of positive externalities: When more hospitals are build by the government?
    • ]]>     2021-12-18 13:33:01 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954803080     Negative externalities (Environment) sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954805361
  • Producing and consuming causes a negative externalities to the third party.
  • Damage includes : Pollution, destruction and other disruptions.
    • ]]>     2021-12-18 13:36:56 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954805361     Social cost sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954808163
  • The total cost of the society
  • Includes both private cost and any external cost.
    • Social Cost : Private cost + External cost
    ]]>     2021-12-18 13:41:32 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954808163     Social Benefit sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954825297
  • Benefit to the society when producing and consuming goods/services.
  • Social Benefit : Private Benefit + External benefit
  • External benefit is benefit that enjoyed by other people without paying for it
    • ]]>     2021-12-18 14:07:45 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954825297     Private benefit sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954852131
  • Profits made by producers in selling goods and services
  • Customers satisfy after consuming the goods and services to fulfill their needs and wants.
  • External benefit : Private benefit + Social benefit
    • ]]>     2021-12-18 14:49:24 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954852131     Private cost sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954870007
  • Expenses to producers in using resources to produce output.
  • Cost to consumers, where they need to spend part of their income to buy goods and services.
  • External Cost : Private cost + Social cost
    • ]]>     2021-12-18 15:16:45 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1954870007     2.11 - Mixed Economic System sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1960265624
  • Private Sector : Owned by private individual
  • Public Sector : Owned by national or local government
  • Government eg : Public Hospital, Schools, Roads
    • ]]>     2021-12-22 10:16:20 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1960265624     Mixed Economics System Definition sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1960459993
  • Mixed Economic system combines government planning and ownership of resources with free market system (Private Sector).
  • To determine the allocation of resources in the economy such as what to produce?, How to produce? and whom to produce.
    • ]]>     2021-12-22 13:05:26 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1960459993     The importance of having public sector in the system: sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1960493785
  • Government employ factors of production to produce and supply worthwhile goods/services that private sectors will not produce or supply because it's not profitable for them to do so. 
  • Provide welfare benefit to poor people so that they can afford to buy from private sector who imposes higher price to the products.
  • Support people who are unemployed because private sectors will only employ if their profitable to do so. But government will provide financial resources and restrain them for other employment.
    • ]]>     2021-12-22 13:24:11 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1960493785     Importance of having public sector in the system sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969441357
  • Restrict the production of harmful goods and services such as weapons and drugs
  • Introduce laws to protect the environment such as plants and animals
  • Indirect taxes are used to  raise price and reduce the consumption of some non-desirable goods such as cigarettes and alcohol. 
  • Subsidies are provided to reduce cost of desirable goods such as medicines to private sector so that they can able to supply more. 
    • ]]>     2021-12-31 04:44:35 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969441357     Problems created because of government intervention. sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969481223
  • Government takes longer time to agree and have an impact on the economy, firm or the individual.
  • Price controls may encourage smuggling and black markets to exit economy
  • Regulation can increase price production price and cost
  • Public sector organization may be inefficient and may produce poor quality goods and services.
  • Government intervention can cause conflicts
  • Some government intervention maybe based on political issues.
    • ]]>     2021-12-31 06:08:59 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969481223     Topics sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969512846 3.1 - Money and Banking
    3.2 -     Households
    3.3 -     Workers
    3.4 -     Trade Union
    3.5 -     Firms
    3.6 & 3.7 -     Organising Production
    3.8 -     Market Structure]]>     2021-12-31 07:26:56 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969512846     3.1 - Money & Banking sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969513944 2021-12-31 07:29:21 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969513944 Barter system sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969517372 Before money was introduced, barter system was used in all economics.
    1. Definition: Exchanging one good/services with another good is called barter.
    2. Challenges: People find it so difficult to exchange to satisfy their needs on time
    ]]>     2021-12-31 07:37:05 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969517372     3 main problems sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969527448 1. Difficulties in fixing an exchange rate:
    • In barter system, the value of each item should be expressed in terms of other goods.
    2. Difficulties in finding someone to swap with:
    • Double coincidence of wants. When a person do not want that particular good, another person will not be able to swap/exchange.
    3. Difficulties to save:
    • Non durable goods will be hard to save for longer period such as food compared to durable goods such as wood or stone.
    ]]>     2021-12-31 07:57:33 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969527448     Historical Stages of Money sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969535364 Stage 1 : Knives, beads, shoes were used as money object.

    Stage 2 : Precious metal, gold and silver which was possible enough to become money.

    Stage 3 : Coins were introduced, where metals were stamped with the face of their king/queen at particular period to show their value.

    Stage 4 : First paper money was issued by a goldsmith who accepts deposit of the precious metal for keeping them safely.]]>     2021-12-31 08:12:35 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969535364     Define Money sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969539174
  • Money is a medium of exchange which can be a store of value too.
  • Types of money - Coins & Notes
    • ]]>     2021-12-31 08:20:55 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969539174     Functions of money sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969540989 Money as a medium of exchange
    Money as a     store of value
    Money as a     deferred payment
    Money as a     measurement value]]>     2021-12-31 08:24:34 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969540989     Medium of Exchange sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969542159
  • Can be used to buy and sell things
    • ]]>     2021-12-31 08:26:49 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969542159     Store of value sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969543863
  • Money can be stored for a period of time.
  • Store in Banks and other.
  • Determine whether poor or rich
    • ]]>     2021-12-31 08:30:10 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969543863     Measure of value sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969546486
  • All product will able to have a value
  • Ex: Milk, Egg, Food, etc
  • These values can be compared.
    • ]]>     2021-12-31 08:35:45 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969546486     Standard of Deferred Payment sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969551390
  • Money can be used to pay for future payment and receipts
  • not to pay immediately
  • Ex: Electric bill, Water bill, Loans, School fees.
    • ]]>     2021-12-31 08:44:38 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969551390     Characteristic of money sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969555191
  • Acceptability - Money is accepted to every humans.
  • Durability - Money can be long lasting because it's strong and durable.
  • Portability - Money can be carried around easily.
  • Divisibility - Money can be divided from large to small value
  • Scarcity- Money must be limited in supply to maintain it's value
    • ]]>     2021-12-31 08:51:58 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969555191     Bank sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969560540 2021-12-31 09:02:13 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969560540 1) Commercial Bank sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969565701 1) Functions
    • Accepting deposits
    • Providing loans and advances
    • General utility services
    • Agency services
    2) Bank Accounts
    • Savings Account : Able to save money for future planning. Can able to deposit and withdraw. But can't write cheques. Offer low interest.

    • Fixed account : Provide investors with a higher rate of interest than regular savings account, until given maturity date.
    • Current account : It's a deposit account, which offers to write cheques, debit card payments and overdraft facilities.
    ]]>     2021-12-31 09:12:56 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969565701     Methods of payments (Commercial Banks) sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969632715
  • Cash
  • Direct Debit
  • Cheques
  • Debit Card
  • Credit Card
    • ]]>     2021-12-31 12:07:16 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1969632715     Method of Payments sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970445807
  • Cash : Use Coins & Notes to pay people.
  • Direct Debit : Banks will pay the monthly Utility Bills behalf of you.
  • Cheques : Written promise to pay the cash to another  person/organization. Should consist the Date, My Name, person whom I'm sending & Account Number.
  • Debit Card : Can able to pay for electrical items to a business organization using card.
  • Credit Card: Same as debit card but the card holder need to pay back for their purchases in a month. (Short term interest charge)
    • ]]>     2022-01-02 04:16:00 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970445807     Types of loans sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970451826 1. Mortage:
    - Long term loan payment
    - Used for property settlement     (25 years in duration)
    - The property     need to be sold or repay the debt if we can't able to pay the debt
    2. Loans:
    - Repaid with high interest in a fixed period (6 to 10 months)
    3. Overdraft Bank:
    -Banks allow people to borrow set amount of money.
    - Allows people to     withdraw money even there's no funds in the account.]]>     2022-01-02 04:27:59 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970451826     Central Banks sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970452505 2022-01-02 04:30:12 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970452505 Central Bank sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970464575
  • Owned by government and run by a public corporation.
  • Function of central bank is to maintain the stability of the national currency and the money supply in its country.
    • ]]>     2022-01-02 05:11:25 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970464575     Other Functions of Money sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970470977
  • Manages national debts - Repay public sector debt 
  • Right to issue notes and coins - Able to print new notes.
  • Sets the official interest rate.
  • Central banks lend some money to other banking systems if they run out of money.
    • ]]>     2022-01-02 05:33:37 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970470977     3.2 - Household sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970529605 2022-01-02 08:22:20 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970529605 Why do people spend? sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970533879 2022-01-02 08:33:25 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970533879 Why do people consume goods and services? sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970552398 Disposable Income: 
    • The income a person left after deducting from their taxes and charges.
    • If the rate of taxes or charges increase, the disposable income will reduce therefore, people have to spend it wisely and save more.
    • If the rate of taxes and charges is less, the people's disposable income will increase, therefore they will spend more on goods and services.
    Wealth
    • When people is more wealthy their spending on goods and services will be more.
    • People with more money value might own assets, jewellery, shares and etc.
    Consumer Confidence
    • If consumers are confident with their future income then this might encourage them to spend more now. Even they can able to take a loan to buy house and car.
    • If consumers think that they are unemployed, they can't spend more, they have to save up more from their income for future spending.
    Rate of interest
    • If the rate of interest is high therefore people will save up their more of their disposable income. 
    • If the rate of interest is low therefore people might tend get more loans from the banks because the loan repayment will be lesser. 
    ]]>     2022-01-02 09:14:20 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1970552398     Factors affecting Supply sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1991412002 2022-01-14 00:29:01 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/1991412002 Economic Agents sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2034364242 3 - Economic Agents
    • Individual
    • Firms
    • Government
    ]]>     2022-02-08 00:57:51 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2034364242     Individual Demand sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2059605536
  • Demand of one consumer.
    • ]]>     2022-02-22 01:27:32 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2059605536     PED Definition sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2062628170 1. PED
    • Price Elasticity of demand.

    3. Formula 
    • % change in quantity in demand of a product / Change in price of product 
    ]]>     2022-02-23 13:55:57 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2062628170     Calculating PED sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067282520 2022-02-26 04:54:11 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067282520 PED Definition sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067289141 1. Definition
    • Price Elasticity of demand measures the sensitivity of quantity demanded due to the change in price.
    ]]>     2022-02-26 05:09:17 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067289141     PED Formula sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067291824 2022-02-26 05:16:06 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067291824 Price Inelastic Diagram sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067293941
  • Price has a small effect on demand.
    • ]]>     2022-02-26 05:22:16 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067293941     Price Elastic diagram sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067296123
  • Demand is very sensitive to the change in price.
    • ]]>     2022-02-26 05:28:10 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2067296123     Trends on Consumer Spending sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2069374208 1. Real incomes have risen
    • Earn high income 
    • Spend more on luxury/wants
    • Use of credit cards to boost spending.

    2. People work for more hours 
    • More leisure time 
    • Spend time for holidays

    3. Population trends 
    • Choose to marry
    • Increased spending 

    4. Social trends have changed
    • More females are going to work.
    • Less time to have family.

    5. Technology has risen rapidly
    • Spending on high tech gadgets (Smartphones laptops etc)

    6. Concerns for the environment is growing
    • Support for the product with fewer harmful effects (Pollution)
    ]]>     2022-02-28 12:39:19 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2069374208     Why do people save? sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2069383327
  • Holidays
  • Unexpected problems
  • To earn interest
  • To buy cars/house
  • Children future education
  • Unexpected problems 
    • ]]>     2022-02-28 12:46:36 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2069383327     Why do people borrow sooryarameshsrk https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2069386249
  • Personal Use
  • To maintain their living standards
  • Education
  • To buy Car/House/Holiday
  • For business investment
    • ----------------------------------
    Factors affecting Borrow 

    1. Availability of Loans
    2. Social Attitudes
    3. Confidence
    4. Rate of interest
    ]]>     2022-02-28 12:48:55 UTC https://padlet.com/sooryarameshsrk/gjvkzfbr88zk6v1e/wish/2069386249