Member-only story

Economics Complete Introduction: Teach Yourself

Chase Morris

·13.7k Followers· Follow

Published in Economics: A Complete Introduction: Teach Yourself

7 min read

107 View Claps

9 Respond

Save

Listen

Economics is the study of how societies produce, distribute, and consume goods and services. It is a broad and complex field that encompasses a wide range of topics, including production, consumption, markets, prices, money, and banking. In this article, we will provide you with a comprehensive to the basics of economics, so that you can better understand the world around you.

Economics: A Complete Introduction: Teach Yourself

by Thomas Coskeran

4.4 out of 5

Language	:	English
File size	:	2155 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	455 pages

The Basics of Production

Production is the process of creating goods and services. The factors of production are the inputs that are used to create goods and services, and they include land, labor, capital, and entrepreneurship. Land is the natural resources that are used in production, such as minerals, oil, and water. Labor is the human effort that is used in production, such as the work of farmers, factory workers, and teachers. Capital is the man-made resources that are used in production, such as factories, machines, and computers. Entrepreneurship is the ability to combine the factors of production in a way that creates value.

The production process can be divided into four stages: extraction, processing, manufacturing, and distribution. Extraction is the process of removing natural resources from the earth. Processing is the process of converting natural resources into raw materials. Manufacturing is the process of converting raw materials into finished goods. Distribution is the process of getting finished goods to consumers.

The Basics of Consumption

Consumption is the process of using goods and services to satisfy needs and wants. Consumers are the people who use goods and services, and they can be individuals, households, businesses, or governments. The goods and services that consumers use can be divided into two categories: durable goods and nondurable goods. Durable goods are goods that can be used for a long period of time, such as cars, appliances, and furniture. Nondurable goods are goods that are consumed quickly, such as food, drinks, and gasoline.

The consumption process can be divided into three stages: acquisition, use, and disposal. Acquisition is the process of obtaining goods and services. Use is the process of using goods and services to satisfy needs and wants. Disposal is the process of getting rid of goods and services after they have been used.

The Basics of Markets

A market is a place where buyers and sellers come together to exchange goods and services. Markets can be physical, such as a farmer's market or a shopping mall, or they can be virtual, such as an online marketplace. The price of a good or service is determined by the interaction of supply and demand in the market.

Supply is the amount of a good or service that producers are willing and able to sell at a given price. Demand is the amount of a good or service that consumers are willing and able to buy at a given price. The equilibrium price is the price at which the quantity of a good or service that producers are willing to sell is equal to the quantity that consumers are willing to buy.

The Basics of Prices

Prices are the monetary values that are placed on goods and services. Prices are used to communicate the relative value of different goods and services, and they help to determine what goods and services are produced and consumed.

There are a number of factors that can affect the price of a good or service, including the cost of production, the demand for the good or service, and the supply of the good or service. The cost of production is the amount of money that it costs to produce a good or service. The demand for a good or service is the amount of the good or service that consumers are willing to buy. The supply of a good or service is the amount of the good or service that producers are willing to sell.

The Basics of Money

Money is a medium of exchange that is used to facilitate transactions between buyers and sellers. Money can be physical, such as coins and paper currency, or it can be virtual, such as electronic money. Money has a number of functions, including:

Medium of exchange: Money is a medium of exchange that allows buyers and sellers to exchange goods and services without having to resort to barter.
Store of value: Money is a store of value that allows people to save their wealth for future use.
Unit of account: Money is a unit of account that allows people to compare the value of different goods and services.

The Basics of Banking

Banks are financial institutions that accept deposits from customers and make loans to customers. Banks play a vital role in the economy by providing a safe place for people to save their money and by providing businesses with the capital they need to invest and grow.

There are a number of different types of banks, including commercial banks, investment banks, and central banks. Commercial banks are the most common type of bank, and they offer a wide range of services, including checking accounts, savings accounts, and loans. Investment banks help businesses raise capital by selling stocks and bonds, and they also provide advice on mergers and acquisitions. Central banks are responsible for setting monetary policy, which is the government's use of interest rates and other tools to influence the economy.

Economics is a complex and fascinating field of study. In this article, we have provided you with a comprehensive to the basics of economics, so that you can better understand the world around you. We encourage you to continue learning about economics, so that you can become an informed citizen and make informed decisions about the economy.

Economics: A Complete Introduction: Teach Yourself

by Thomas Coskeran

4.4 out of 5