Economics Is the social science that seeks to describe the factors which determine the production, distribution and consumptionof goods and service.
The main types of resources in the economy Resources - sources, which produce material goods and services. They are called factors of production
Natural resources Human resources Capital resources Minerals,soil Mental and physical efforts of people, knowledge equipment, building, transport, monetary capital Entrepreneurial ability– ability to organize and manage production. Information resources Factors of production
rentsalary the percentage Capitallabour soil Entrepreneurial ability profit
What goods and services will be produced? How will they be produced? Who will get them?
The PPF is a table or graph showing the different quantity combinations of the two goods producible with a given technology and total factor inputs, which limit feasible total output.
The Lorenz curve is a graphical representation of the cumulative distribution function of the empirical probably distribution of wealth or income, and was developed by Max Lorenz in 1905 for representing inequality of the wealth distribution.
The production function is a graphical or mathematical expression showing the relationship between the inputs used in production and the output achieved. The income growth corresponding to a shift of the production function is generated by the increase in productivity.