Knowledge of economics
Definition
1. Scarcity refers to the limited number of resources available is not sufficient to produce many different types to meet the needs of human variation. This is because human needs are not removed. For example, the current shortage of water nowadays is growing. Because population is increasing day by day. , The demand for water increased significantly when compared with water are the same. As a result, shortage of water.
2. Due to lack of resources. It is why people need to decide (Choices) to use these resources to the best or benefit.
3. When choosing a scarce resource to anyway. Would cause lost opportunity cost means that when we use scarce resources to produce one. Would make us lose the opportunity to produce many things always
4. The economy is "on course selection or the allocation of resources is limited to selectproducts and services to optimize both the individual and society as a whole."
The meaning of resources
1. Natural Resources including natural resources, generally known oil, natural gas and minerals, including land too.
2. Labor means the amount of workers in both the quantity and quality.
3. Capital is a factor of production that he man has created such industry advanced technology equipment, bridge, dam roads are all a form of total capital.
4. Entrepreneurship is the capability to manage the process. Make a product happen.
Definition Resource Economics refers to factors of production. We currently divided into four categories, ie.
1. Natural Resources including natural resources, generally known oil, natural gas and minerals, including land too. 4. Entrepreneurship is the capability to manage the process. Make a product happen.
The meaning of resources
1. Natural Resources including natural resources, generally known oil, natural gas and minerals, including land too.
2. Labor means the amount of workers in both the quantity and quality.
3. Capital is a factor of production that he man has created such industry advanced technology equipment, bridge, dam roads are all a form of total capital.
Basic economic problems and the allocation of resources
The evolution of new concepts for economics
1. Commercialism
Previous Year 1776 concept has macroeconomic focus toward the prosperity of the nation. The concept of a group of people interested in the prosperity of the nation at that time is mercantilists.
2. Macroeconomics Department Classic
Analysis of a planned economy began in AD 1776 when the work is the concept of Adam Smith named “An Inquiring into the Nature and Causes of The Wealth of Nations released then it is the work of economists all other out much like the work of David Ricardo, the work of Karl Marx, works of JB Say etc.
The concept economists Department of classical conflict with the concept of popular commercial the real reason for the prosperity of the nation not in the country has accumulated a lot of gold but the capacity in the production of the country. The gold or precious minerals are a medium for the exchange. The commercial exchange of goods and services do easier. Competence in the production of the country depends on amount and growth of inputs of the country such as land, labor and capital. In the short term the country will be able to expand production. To the level full production factors. Cause the equilibrium between demand and supply.
3. Macroeconomics Department Keynesian
The concept of the Keynesian problem of unemployment is demand less than supply. The concept in solving problems of unemployment is necessary government policy will be demand management policies. To have sufficient to stimulating production at full employment level and economic policies that can be used efficiently in solving the unemployment problem is Fiscal policy.
4. Macroeconomics Department financial
Macroeconomics Department financial conflict with Macroeconomics Department Keynesian the dispute that efforts to manage demand including using to stable economic policies. Especially monetary policy will fail greater than success. That is the intervention of government by the economic policy will further cause more economic instability. Macroeconomics Department financial are offering that government intervention will be replaced by economic policy and The central bank should be maintain the growth rate of money supply constant at the country will help stabilize the economy better.
5. Macroeconomics Department New Classic
The adjustment of prices to the equilibrium in the market but conflict with Macroeconomics Department Keynesian is the government will replace the use of demand management policies for the economy to full employment levels. Government should be policies conducted to affect the production and employment is supply-side policies such as to reduce tax rates increase the Motivation to produce and work. This will result in an increase in supply of products supply of labor, supply of capital and the country's efficiency to produce more. Reduce tax rate to expect increased demand to the idea of Keynes that will result in price increases but resulted in quantities of product increases slightly.
Macroeconomic and Microeconomic
Macroeconomics is the study of economy such as employment and National income
Objectives of study economic
1. Increase in national product.
In every country, they want to their countries produce goods and services increased by using the resources or factors of production within the country or abroad used in the production of goods and services. To serve the needs of citizens in country and the remaining exported to the international
2. Increase income for workers.
Due to labor in each country is important to the production or increase the country's products because employment is bringing resources to the interests labor to produce goods and services and to encourage workers have income but if labor is vacant or not used in the production of goods and services will result in lack of income and reduced the country's products.
3. The economic equality.
The economic basic services that government provides to people in the country. Is a public utility such as electricity, water phone, which will make people in the country receive a fair.
To have economic stability
If the economy goes smoothly no economic problems fluctuations, which include maintaining economic stability within the country. Such as policies that make economic no problems radically economic recession or the economic prosperous and the high inflation rate. The stability of the international economy such as policies that make investment or international trade does not cause problems in balance of trade.
Macroeconomic variables
Such as national income, National product, employment, inflation rate and international economy.
1. Independent Variables is a variable that does not depend on other variables with this type variable occurs independent.
2. Dependent Variables is a variable that contains the values change according to other variables such as changing the independent variable.
Macroeconomic relationships
1. Behavioral Relations is a relationship that identify of economic behavior that are studying.
2. Institutional Relations
3. Technical Relations relationships as determined by the technical level such as production function
Stock Variable and Flow Variable
1. Stock Variable is a number of variables at any one time such as at 31 December 2542 with deposits 60,000 million Baht
2.Flow Variable is Variables that are defined in any period one time such as number of production per month is 1,000 pieces.
Static and Comparative Static analysis
Static analysis is analysis of a slide such as analysis of the equilibrium D = S when price= P0.
If the equilibrium analysis, we compare the two points is called Comparative Static analysis
