More About Economics
1. Supply and Demand
- Supply refers to how much of a good or service is available.
- Demand is how much of a good or service people want.
- The interaction between supply and demand determines prices.
2. Market Structures
- Perfect Competition: Many buyers and sellers with identical products.
- Monopoly: One seller dominates the market.
- Oligopoly: A few sellers control most of the market.
- Monopolistic Competition: Many sellers offer differentiated products.
3. Gross Domestic Product (GDP)
- Measures the total value of goods and services produced in a country.
- It’s a key indicator of economic health.
4. Inflation and Deflation
- Inflation: A general increase in prices and fall in the purchasing value of money.
- Deflation: A decrease in the general price level of goods and services.
5. Fiscal and Monetary Policy
- Fiscal Policy: Government spending and tax policies to influence the economy.
- Monetary Policy: Central bank actions that affect money supply and interest rates.
6. International Trade
- Trade between countries can enhance economic growth.
- Concepts like comparative advantage explain why countries benefit from trade.
7. Labor Markets
- Focus on how labor is priced and how wages are determined.
- Unemployment rates and labor force participation are key metrics.
8. Behavioral Economics
- Examines how psychological factors influence economic decision-making.
- Challenges traditional economic assumptions of rational behavior.
