CHAPTER 1-INTRODUCTION-

DPB1023
MICROECONOMICS

PN. NORHASYILA BT. MINHAT

DEFINITION MICROECONOMICS ECONOMIC
OF ECONOMICS VS. RESOURCES

MACROECONOMICS

BASIC BASIC
ECONOMIC ECONOMIC
CONCEPTS PROBLEMS

ECONOMIC
SYSTEM

LEARNING OBJECTIVE DEFINITION
OF
At the end of this chapter, student should
understand : ECONOMICS

1) Definition of economics MICROECONOMICS
2) Economic resources VS.
3) The differences between microeconomics and
MACROECONOMICS
macroeconomics
4) The concept of basic economics problems, i.e problems of ECONOMIC
RESOURCES
scarcity, choice and opportunity.
BASIC
ECONOMIC
CONCEPTS

BASIC
ECONOMIC
PROBLEMS

5) The basic economics problems of what, how much, how and PRODUCTION
for whom a product is produced. POSSIBILITIES
CURVE (PPC)
6) The different economics systems : free market, centrally
planned, mixed and islamic economic. ECONOMIC
SYSTEM
7) The merits and demerits of each economic system.

DEFINITION OF ECONOMICS DEFINITION
OF
Economics is a science which studies
human behaviours as a relationship ECONOMICS
between ends and scarce which have
alternative uses. MICROECONOMICS
VS.
OR
MACROECONOMICS
Economics is a study of how people use
their limited resources to try to fulfil ECONOMIC
unlimited wants and involves RESOURCES
alternatives or choices.
BASIC
ECONOMIC
CONCEPTS

BASIC
ECONOMIC
PROBLEMS

PRODUCTION
POSSIBILITIES
CURVE (PPC)

ECONOMIC
SYSTEM

MICROECONOMICS VS. DEFINITION
MACROECONOMICS OF

MICROECONOMICS MACROECONOMICS ECONOMICS

The study of The study of the MICROECONOMICS
individual parts of economic system VS.
the economy such as a whole such as
as public choices, national income, MACROECONOMICS
business choices trade cycle,
and personal unemployment ECONOMIC
choices. rate, inflation and RESOURCES
general price level.
BASIC
ECONOMIC
CONCEPTS

BASIC
ECONOMIC
PROBLEMS

PRODUCTION
POSSIBILITIES
CURVE (PPC)

ECONOMIC
SYSTEM

EECCOONNOOMMIICCRREESSOOUURRCCEESS DEFINITION
OF

ECONOMICS

 EtycpoeEnscoo:mn- oicmricerseosuorucrecessoorrffaaccttoorrss ooffpprorodduuctciotinosns are 4MICROECONOMICS
VS.
MACROECONOMICS

are 4 types :-

ECONOMIC

1) ---1-TTeTglLIos)hhhAeacaoeeeNraTITTslatgosDhntuhhhvspncriLaraeeeuoadaaaoAflpnatyntpvpsluNruiomcap.uoaaheDwcrelpntylyaueayumipo.oetlatnrlolhiffaeyynotoftillnndlonhafofylto.faelncgaotfrlnecohdaenclourdneacdaiglrudsrnairiretrssanhididransipddineorgnihiestgnrpihyshprhwe.rreee.reeeniesnrtsrnehdnoedotintanuaun..ttnnrrlltccytytheeofeofionixonxeenenqadqtudrhtutiahnheialn.eitliyltsoyucarafnatidcoen RESOURCES
-
of theBASIC
- ECONOMIC
CONCEPTS
-
andBASIC
- ECONOMIC
PROBLEMS

PRODUCTION
POSSIBILITIES
CURVE (PPC)

ECONOMIC
SYSTEM

EECCOONNOOMMIICCRREESSOOUURRCCEESS DEFINITION
OF

ECONOMICS

 tE2yc)poLenAsoB:mO- UicRresources or factors of productions are 4MICROECONOMIC
VS.
MACROECONOMIC

- Labour may be skilled or unskilled. ECONOMIC

1) -LALNaDbour contribute physical and mental RESOURCES

- Is eanneragtyu. rally occurring resource on the surface of theBASIC
-eaLrathboourr wariethuiniqthue aenadrthha.ve feelings.
ECONOMIC

CONCEPTS

- -ThLeabsouuprpolyffeorf slaernvdiceissiannhdenreont thlyefmixseedlveins.location andBASIC
-geLoagbroauprhcya.n be moved from one location to ECONOMIC
PROBLEMS

- --TTlohhcLaTeeahantbevpoiaotoaphulnyauerm.yred.meiofenffentlrtafifonnorrdellfaaifsnbicoddieuenirspciseyrenaandnwtda.anpgtreoo.dnucqtuivaitlyi.ty and PRODUCTION
- POSSIBILITIES
CURVE (PPC)

ECONOMIC
SYSTEM

EECCOONNOOMMIICCRREESSOOUURRCCEESS DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
3t)ypCeAPsIT:-AL VS.
MACROECONOMICS

- Consists of assets such as money, equipment, ECONOMIC
RESOURCES
1) LmANacDhinery and raw materials that are used in the

- Ispraodnuacttuiornalolyf otchceurrgroinogdsr.esource on the surface of theBASIC
- eCaartphitaolrcwanithbeinmthoveeedafrrothm. one location to
ECONOMIC

CONCEPTS

- - Tahneosthueprpalnydocfalannbde isncirnehaesreednotrlydfeicxreedasinedl.ocation andBASIC
- TgThehoeegvrpaaalpyumheyeo.nft lfaonr dcaipsitdael ipseinntdearensttoonr dqivuiadelintyd.and ECONOMIC
PROBLEMS

PRODUCTION

location. POSSIBILITIES
CURVE (PPC)

- The payment for land is rent. ECONOMIC
SYSTEM

EECCOONNOOMMIICCRREESSOOUURRCCEESS DEFINITION
OF

ECONOMICS

4)EtyEcpoNenTsoR:m-EiPcRrEesNoUuErcRes or factors of productions are 4MICROECONOMICS
VS.
MACROECONOMICS

- Is a person with the skills and ability to ECONOMIC
1) mLAaNnDage a firm efficiently and profitably. RESOURCES

-- AIsnaennatrteuprarlelynoucecrufrurnincgtiroenssouarscea olenatdheer,surface of theBASIC
pealarnthneor,wcioth-oinrdtihneateoarrathn.d manager of
ECONOMIC

CONCEPTS

- aThcteivsiutipepslyofoaf lfairnmd.is inherently fixed in location andBASIC
- Egenotrgerparpehnyu. ers or managers need to bear ECONOMIC
PROBLEMS

- reTlTToihhhnsceeketarstevpp.iaopaalnyryuem.meneeuonnfettrlafsfonohrdriplatihsniseddpeeirspfoferofenirtndt. taa.nntdornisqkusaolifty and PRODUCTION
-- POSSIBILITIES
CURVE (PPC)

ECONOMIC
SYSTEM

ECONOMIC RESOURCES DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

1) LAND ECONOMIC
RESOURCES

- Is a naturally occurring resource on the surface of theBASIC
earth or within the earth.
ECONOMIC

CONCEPTS

- The supply of land is inherently fixed in location andBASIC
geography. ECONOMIC
PROBLEMS

- The value of land is dependant on quality and PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- The payment for land is rent. ECONOMIC
SYSTEM

EBCAOSNICOEMCOICNORMESICOCUORNCCEESPTS DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

1) 1) Scarcity ECONOMIC
- TLIe-shAaaeNrtwOlDhnismcauaocnptirtuuptewsrrldayiwatllochnyhofidneomlancdtnpchegudaesorriireoersieanddisrgsntt.hhor&ee.msrseoeanurntvrl’ciyscefeuioxsnenladitmrheineitelsoducrafaticoen RESOURCES
g- eogTrhaisphpyr.oblem occurs due to limited
- of theBASIC
ECONOMIC
CONCEPTS

andBASIC
ECONOMIC
PROBLEMS

- Thesvuaplupelyoofflannadtuisradlerepseonudracnetso,ntimquea,lity and PRODUCTION
locaetinoenr.gy, finance and factors of POSSIBILITIES
CURVE (PPC)

- Theppraoydmuectniot nfo.r land is rent. ECONOMIC

SYSTEM

BEACSOINC OECMOINCORMEICSOCUORNCEEPSTS DEFINITION
OF

ECONOMICS

Economic resources or factors of productions are 4MICROECONOMICS
E.g :- VS.
types :- MACROECONOMICS

Scarcity Problem ECONOMIC
RESOURCES
1) LAND
IeInsadarivtihndauotarul wraitllhyin-eaoFnnactdtcechetrotuepaprirnourembricalneehmnrgattshoaerfse.fsowscoeaodlrl,cuaditrsryicnsoekcfastriomcintey footfhr mreeocnrseeuaytrtioofnap,acsyteufodoryffaeEneCtBOsdAhNSOIMCeIC
- CONCEPTS

- The supply of- lFaacnedpriosbleinmhoef srceanrctitlyyofficxaepidtal icnaulsoecd abytiliomnitead nECdBOANSOIMCIC
geFoirgmraphy.
economic resources. PROBLEMS

- The value of land is dependant on quality and PRODUCTION
location. - Face problem of financial resources and revenue to buildPOSSIBILITIES
CURVE (PPC)
- GoTvheernpmaeynmtent bfaosriclaamnednitiiess rfoernsotc.iety.
ECONOMIC

SYSTEM

EBCAOSNICOEMCOICNORMESICOCUORNCCEESPTS DEFINITION
OF

ECONOMICS

Economic resources or factors of productions are 4MICROECONOMICS
2) Choice VS.
types :- MACROECONOMICS

- Problems of choice a rise when we are faced with problem ECONOMIC

1) LoAf sNcaDrcity. RESOURCES

-- eIsPseaeroarvptichlneeasoh.trauswrtaoitlmlhyianokectcchhueoricreieansrgbtehrtew. seeonudrecseireodngotohdes asnudrface of theBASIC

ECONOMIC
CONCEPTS

- gTrrPeeheessooeoopuuglserrrccuaaeeplsspspoffhoolhyrry.atthhsoeetfopfulrmateunasrekedne. ticsahnoidinctehhseebrceeotnwnseteelrynvafuitsxioaengdeofoinf location andBASIC
ECONOMIC
- PROBLEMS

- - TChonesuvmaelurseneoefdlatonmdakise cdheoipceesnindaorndetrotonmqauxiamliiztey and PRODUCTION
lsoactiasftaicotnio.n, producers need to make choices in order to POSSIBILITIES
CURVE (PPC)

- Tmhaeximpiazeymproefintst. for land is rent. ECONOMIC

SYSTEM

EBACSOINC OECMOINCORMEICSOCUORNCEEPSTS DEFINITION
OF

ECONOMICS

E.g:tE-ycpoenso:m- ic resources or factors of productions are 4 MICROECONOMI
VS.
MACROECONOM

1) LCAhNoDices Problem ECONOMIC
RESOURCES

- eIInsadarivthnidauotarulwraitllhyia-noUccctncholuiermdrrieintiaengdrgttodhree.pmsriooaurnordtcieeissomannadnthareagetsidounrafal ce of theBASIC
ECONOMIC
CONCEPTS

- The supply ofccluharonriecdnetsisbbuiandshgeeedrt.eonntalyndfixineddiviinduloalcation and BASIC
geography. ECONOMIC
PROBLEMS

- The value of l-aMnadkiescdheopiceensdbaanset dononqguoaallisty and PRODUCTION
locFairtmion. POSSIBILITIES
CURVE (PPC)

- The payment-fMoralkaencdhoisicreesnbta. sed on priorities to ECONOMIC
SYSTEM
Government fulfill the wants of society.

EBCAOSNICOEMCOICNORMESICOCUORNCCEESPTS DEFINITION
OF

ECONOMICS

3) tEOycppopensoor:mt-uincirteysCoousrtces or factors of productions are 4MICROECONOMICS
VS.
MACROECONOMICS

- Problem of choice result in opportunity cost. ECONOMIC
RESOURCES
1- ) OLpApNoDrtunity cost refers to the second best
osTeIepshalteiaerocthnnst uatothpthruepawrlatbyitlwelohysifilntollacohtnchpaudetvireoiresinantio.rgnthbhreee. srfeoonurtrglcyoenfioxeenidnthionerldsouecrraftatoicoen of theBASIC
- Ogpepoogrrtaupnhityy. cost a rise from limited factors of ECONOMIC
CONCEPTS
-
- andBASIC
ECONOMIC
PROBLEMS

- pTrohdeuvcatliuoen.of land is dependant on quality and PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- The payment for land is rent. ECONOMIC
SYSTEM

EBACSOINC OECMOINCORMEICSOCUORNCEEPSTS DEFINITION
OF

ECONOMICS

E.g:-Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

Opportunity Problem ECONOMIC
RESOURCES
1) LACNoDst

- Is a naturally- Aonccinudrirvinidguarel msoauyrhcaeveontwtoheopstuiornfsa:ce of theBASIC

ECONOMIC
Ienadrivtihduoarlwithtionptuhrecheaasretha.shirt or a pair of shoes. CONCEPTS

- The supply of land is inherently fixed in location andBASIC
geography. ECONOMIC
- A firm may have two options: to open PROBLEMS

- ThFeirvmalue ofalanenwd bisusdienepsesnodratnottaokneoqvuearlaitny and PRODUCTION
location. existing business. POSSIBILITIES
CURVE (PPC)

- The payment- Afogrolvaenrndmisenret nmta. y have to choose ECONOMIC
SYSTEM
Government between constructing a hospital or a

recreational.

BEACSOINCOEMCOICNROEMSIOCUPRRCOEBSLEMS DEFINITION
OF

ECONOMICS

 Economic re1s. oWuHrAcTeTsOoPrRfOaDcUtCoEr?s of productions are 4MICROECONOMICS
typReesfe:r-s to the type of goods and services to be produced VS.
MACROECONOMICS

ECONOMIC

1) LAND 2. HOW MUCH TO PRODUCE? RESOURCES

- Is a natuRraeflelrys otocthceunrurminbgerrteo sbeouprrocdeuceodn the surface of theBASIC
earth or within the earth. ECONOMIC

CONCEPTS

- The supply of land is inherently fixed in location andBASIC
geography. ECONOMIC
3. HOW TO PRODUCE? PROBLEMS

- ThevaRleufeersotof tlhaencdheiaspedstempeethnoddaofnptroodnuctqiounality and PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- The payment for land is rent. ECONOMIC
4. FOR WHOM TO PRODUCE? SYSTEM
 Refers to the distribution of income

EBACSOINC OECMOINCORMEICSOPURROCBLEESM DEFINITION
OF

ECONOMICS

P1r)EtoyWcpdoeuhnscaoe:tm-dGi?coroedssouarncedsSoer rfvaiccteorsssohfopurolddubcetions are 4MICROECONOMICS
VS.
MACROECONOMICS

 LTrAehNseoDrueraceres insufficient available economic ECONOMIC
to fulfill people unlimited wants. RESOURCES
1)

- TgIesaTTabheahhteaoerceeatogphnrsudrrceuaoaneeofodptpttrruerrutphyeawrrclmy,iaydeni.stledilohontytifaceaimnoirntlemaiecdott.ncyhnitnudehmoerefisuresigtsanthohtirgneoecthhdhrgpees.ooasrootteohsdteneausrttrnttlchmoyoeebfufigoesxaotenlplobdortdeochsidanfeotutihrlocsogaenuoctdrnoawfbfeatiiylcol en of theBASIC
- ECONOMIC
CONCEPTS

andBASIC
ECONOMIC
PROBLEMS

- Tahveaivlaabluleeeocof nlaonmdicisredseouprecnesdatonthoenvaqruioaulisty and PRODUCTION
loecaontioomn.ic activities. POSSIBILITIES
CURVE (PPC)

-  TtDhhueaetpataosylomimceiietnetytddffoaercmtloaarnnsddosficsparrnoedbnuetc.ptiroond,uncoetdall goods ECONOMIC
SYSTEM

BEACSOINC OECMOINCORMEICSOPURROCBLEESM DEFINITION

OF

2) How Much Goods and Services should be Produced? ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

 To overcome this basic economic problem, a producer

1) IIpmtffhreIgLTttuseohhhAeasdpeeaoeNrturrrtgicoeeDhndsredeuaiiarossunptpwcruaatpithifwrillhyollyoayiin.itwgtlnhlo.hhycedfirdnoeeqleamacutmsnchaaeuadnennptrdiiredrts,iyoantfdhioorgnueftrhhcrdaptee.eiropsormnaeodarnuuotnictfrcdlectuyhreilnafemiorxtguhgenoseodottomdhddisneea,.crtlskhroeeuecatr.asfeaticoen ECONOMIC
RESOURCES

of theBASIC
- ECONOMIC
CONCEPTS

andBASIC
- ECONOMIC
PROBLEMS

- TaohvblTToeeohhcrrueeseatuftvpotpiharoapeelnylu,yqm.aeourepaournnofnttdildtafuyeoncorresdfrulgaipmosnpouddldysestiinspmtoetrahebnkenedemtapa.rancorctdkuoeurtcan.eteqdudtoeaclaiivstyoioiadannsd PRODUCTION
- POSSIBILITIES
CURVE (PPC)

ECONOMIC

SYSTEM

BEACSOINC OECMOINCORMEICSOPURROCBLEESM DEFINITION

OF

ECONOMICS

3) HEocwonSohmouicldreGsoooudrscaensdoSr efarvcitcoerssboef Pprroodduuccetdio?ns are 4MICROECONOMICS
types :- VS.
 MACROECONOMICS

 This basic economic problem refers to the ECONOMIC
mmPieAdpPnegTLTIlTfrerrostpaafooohhhAetaeecrexxdddanoeeeNrcoiiaruuummttsgdmDhntisvpcccivruiiivtaetuoaiazzaeoincieoriiolpntylpnneurayunnmasp.hrggtewrtenilyatomaoeyttledio.ehnhtnlnmculohfceedycthsoftilainsaonpnotpfflpoaunriicrmtaqtmioorhntcthduafpdapeluidieazetlunuir-r.seconsitiacrensodidtdgqtaantmihueoieuerrgniecennstbapfhthrsainpiedtrneoe.icetervinansirvotcetneodtoiydhdittrntoaueun.aseentncrcindclqcohytthdoiuefinoonnffepciinonitqfxsoqroaenuocnuqctddleooseattuuoshe.bbibatrcnqeosaseltuiuisltwsoooueyerunf-hscndareiatlfnloedatynid.coen RESOURCES
1)
- of theBASIC
ECONOMIC
 CONCEPTS

- andBASIC
ECONOMIC
- PROBLEMS

 PRODUCTION
POSSIBILITIES
- CURVE (PPC)

 ECONOMIC
SYSTEM

the relative costs of labour and capital.

EBCAOSNICOEMCOICNORMESICOPURROCBELSEM DEFINITION
OF

ECONOMICS

4) FtEoycrpoWenhsoo:mm- ischoreulsdoGuorocdessboerPfraodcutocerds aonfdpDroisdtruibcuttieodn?s are 4MICROECONOMICS
VS.
MACROECONOMICS

 TdhLisiAtsrNibbDaustiiocnecpoanttoemrnics problem refers to the ECONOMIC
of goods and services. RESOURCES
1)

- dDIeiisssattrarriitbbhnuuattoiitoorunnwrappiatlalhtytttieneorrcnntchssueoorffreiigannocrgotohdrme.sesa,orauefrfacofrefdeaocbtneildtithybeyansdurface of theBASIC
ECONOMIC
CONCEPTS

- soTchietys’uspppulrychoafslianngdpoisweinr.herently fixed in location andBASIC
Agperoodguraceprhpyr.oduces a good for people who can ECONOMIC
 PROBLEMS

- aTffhoredvtaheluceosotfolaf nthdeigsodoedsp.endant on quality and PRODUCTION
 Toloecnastuioren.that society as a whole can afford goods POSSIBILITIES
CURVE (PPC)

- thTahtearpeapyrmodeunctefdo,rthlaengdoviserrnemnet.nt should introduce ECONOMIC
a fair distribution system. SYSTEM

ECONOMICC RSEYSOTUERMCES DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

TYPES OF ECONOMIC SYSTEM

1) LAND ECONOMIC
RESOURCES

- Is a naturally occurring resource on the surface of theBASIC
earth or within the earth. ECONOMIC

CONCEPTS

- The supply of land is inherently fixed in location andBASIC
geography. ECONOMIC
PROBLEMS

C-APITTAhLeISvMalue SoOf ClaInALdISisMdepeEMCnIOXdNEaDOntMoYn quISaLliAtyMIaCnSd PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- The payment for land is rent. ECONOMIC
SYSTEM

ECONOMIC RESOURCES DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

ECONOMIC

1) LAND RESOURCES

- Is a naturallyCoAccPurIriTngAreLsIouSrMce on the surface of theBASIC
earth or wiAthn eincontohmeic seysatermthwh.ere individuals and ECONOMIC

CONCEPTS

- Tgheoegsruappphsleyyl.leorsfmlaakenedconiosmsyiicsntdehemceisrioenns utsliyngfaixpericde in location andBASIC
ECONOMIC
PROBLEMS

- The value of land is dependant on quality and PRODUCTION
location.MERITS AND DEMERITS POSSIBILITIES
CURVE (PPC)

- The payment for land is rent. ECONOMIC
SYSTEM

ECCHOANROAMCTICEREISSTOIUCSRCES DEFINITION
OF

ECONOMICS

1.tEycpPoernisvoa:m-teicorwesnoeursrcheips oofr rfeascotourrscoefsproductions are 4MICROECONOMICS
VS.
MACROECONOMICS

2. Freedom of enterprise and ECONOMIC

1) ILscAahNoDniaceturally occurring resource on the surface RESOURCES
-
3. eCarotnhsourmweitrhsi’nsothveereeaigrtnht.y of theBASIC
ECONOMIC

CONCEPTS

- 4. The supply of land is inherently fixed in location andBASIC
gCeoogmrappehtiyt.ion ECONOMIC
PROBLEMS

- 5. lTohGceoavtvieaorlnun.emoefnltainndteirsvednetpioenndant on quality and PRODUCTION
POSSIBILITIES
CURVE (PPC)

- 6. ThPericpeaysmysetnetmfor land is rent. ECONOMIC
SYSTEM

ECONOMIC RESOURCES DEFINITION
OF

ECONOMICS

 EconoMmEicRreITsoSurces or factorDs EofMprEoRduITctSions are 4MICROECONOMICS
VS.
 tyPproedsuc:-tion according to  Inequality of MACROECONOMICS

consumers’ needs distribution of wealth ECONOMIC

1) LEAcoNnDomic freedom and income RESOURCES

- IeErseafsfairoctiuhenrncaotetursutwirlaizitlalhytiiononctochfuerreianrgthre. sIunonfulearmtcioepnlooaynnmdtehhneitgrshauterface of theBASIC
ECONOMIC
CONCEPTS

 TgVohaoreidesstyuopfpcloynsoufmlaenr d is inherLeanctklyoffisxeocdiainl wloelcfaarteion andBASIC
gEenhoagnrcaepdhtyra. de, business  Wasteful competition ECONOMIC
- PROBLEMS



- TanhdeRv&aDlue of land is depenMdiasnaltloocnatqiounaolifty and PRODUCTION
 lAouctoamtioatnic. incentives resources POSSIBILITIES
CURVE (PPC)

-  TFhleexibpilaityyment for land isreSnot.cial cost ECONOMIC

SYSTEM

ECONOMIC RESOURCES DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

ECONOMIC

1) LAND RESOURCES

- Is a naturSalOly CocIcuArrLinIgSreMsource on the surface of theBASIC
earth oAnrewconitohmiicnsytshteem wehaerretahll t.he economic ECONOMIC

CONCEPTS

- Thedesciusiopnps alyre omafdleabyntdhe igsoveinrnhmeenrt oerna tcleyntrfailxed in location andBASIC
geography. authority ECONOMIC
PROBLEMS

- The value of land is dependant on quality and PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- The payMmEReInTtSfoArNlDanDdEMisERreITnSt. ECONOMIC

SYSTEM

ECCHOANROAMCTICEREISSTOIUCRSCES DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
typ1e. s P:-ublic ownership of VS.
MACROECONOMICS

1) LANDresources ECONOMIC
RESOURCES

- Iesa2ar.thnCaoetrunwratirtlalhylinopctlchauenrrenianinrgtghre.asuouthrcoeroitny the surface of theBASIC
ECONOMIC
CONCEPTS

- Tghe3oe. gsrPuarppiphclyey. omf elacnhdaisniisnhmeroefntlleysfsixeerd in location andBASIC
ECONOMIC
PROBLEMS

- The viamlupeoorftalanncdeis dependant on quality and PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- Th4e. pCaeymnternatlfcorolnatnrdolisarnednt. ECONOMIC
SYSTEM

ownership

ECONOMIC RESOURCES DEFINITION

OF

ECONOMICS
EconoMmiEc RreIsTouSrces or facDtorEsMofEpRroIdTuSctions are 4MICROECONOMICS
 typesP:r-oduction according  Lack of incentives VS.
MACROECONOMICS

to basic need and initiative by ECONOMIC
individuals RESOURCES
1) LANDiEnqcuoaml ediasntrdibwuteioanlthof
eTIshaaerthBruNnseneuaosoetpottsmreuueprwrrprlcaiayloioeltlulylsoohysmcfinaoeltacnitontchnouderorifresianirgnthhree. srsLcfeoroooenunvsetressldcyruoeoemfmfiiogxeenenacrtdnoytdhninoemlsoiuccrafaticoen
- geoginrfalaptihoyn. of theBASIC
- ECONOMIC
CONCEPTS
 Absence of
andBASIC
ECONOMIC
PROBLEMS

- lTohceaRdStvieaooavcplneuiiad.leol epwocmeoflefnlanaortmendic is depencdoamnpt eotnitioqnuality and PRODUCTION
POSSIBILITIES
 Waste of economic CURVE (PPC)

- The payment for land is renrets. ources ECONOMIC

SYSTEM

ECONOMIC RESOURCES DEFINITION
OF

ECONOMICS

 Economic resources or factors of productions are 4MICROECONOMICS
types :- VS.
MACROECONOMICS

1) LAND ECONOMIC
RESOURCES

- eIsaarthnaotruwraitllhMyinoIctXchueErreDianrgtEhre.CsoOurNceOonMthYe surface of theBASIC

ECONOMIC
CONCEPTS

- The supplyAnoefcolanonmdic siyssteimnhwheicrhecnomtblyinefsixboethdcaipnitalliosmcation andBASIC
geography. and socialism
ECONOMIC
PROBLEMS

- The value of land is dependant on quality and PRODUCTION
location. POSSIBILITIES
CURVE (PPC)

- The payment foMrElRaInTdS iAsNrDenDtE.MERITS ECONOMIC
SYSTEM

ECCHOANROAMCITCERREISSTOIUCRSCES DEFINITION
OF

ECONOMICS

 1.EcPonuobmlicicarnedsopurirvcaetse oorwfancetrosrhsipofopf roductions are 4MICROECONOMICS
typreesso:-urces VS.
MACROECONOMICS

2. Price mechanism and economic plans in ECONOMIC
RESOURCES
1) LAmNaDking decisions

- 3.IsGaonvaetrunrmalelynot chceulprrsintog rceosnoturorcl einocnomthee surface of theBASIC
eadritshpoarriwtyithin the earth. ECONOMIC

CONCEPTS

- 4. gTThheGeoeecogosvvranuaelopprunmphemlyyyo.eofnflatlaninndtdeisrivsdeiennphtieeonrnedinantnltythofeinxeqduianliltoycaantidon andBASIC
- ECONOMIC
PROBLEMS

PRODUCTION

5.loCcaot-ioopne. ration between the government, POSSIBILITIES
CURVE (PPC)

- Thpeubpalicymaenndtbfuosr ilnaensdsisserecntot.rs ECONOMIC

6. Government control of monopolies SYSTEM