Grade 12 Economics

It is the social science of scarcity and choice

When you use all resources to achieve desired result

When you use bare minimum of resources to achieve desired result

The sum of all that is lost from one course of action over another

How do things work?- The GDP is _____

What should be?- The GDP is too low!

1) Observations2) Collect information3) Explanation (hypothesis)4) Verfication (theory/law or fallacy)

Whatever is good for one, it is good for all

If event A followed event B, then B caused A

If event A contributes to event B, then A caused B

As we make more of X, the opportunity cost increases (as more of x is made, there are more "sacrifices" we must make to make more of x)

This law states that if we get more of one thing, then we get less of the other thing. if we have 1 more employee working on 1 factory, that will gain us profit. But if we get 500 more emplyees for the same factory, it will cost us more to pay for them and wont get as much profit, instead it will be inefficient use of resources.

This law states that if we double everything, you will achieve more than double the income. As if you double the factory, you must double input and output, but do not need to double all the workers (president, vice -president) and so it will more than double the income. Also buying 1 of something is more expensive than buying 3 in 1

Anything that can be used to manufacture goods or services such as land, labour, and capital

Land: not just the fertile soil, but also the natural resources that provide us the raw materials to make goods and servicesLabour: Not just the physical work but also the psychological labour such as mental effort, entrepreneurshipCapital: Real capital- automobile, factory, etc and money capital- money that is used to fund the real capital