Class Notes 4 You

Sustainable Economy 🌳An ideal and sustainable economy is one which provides for the greatest amount of general well-being with the least amount of resource use and environmental harm. 🌳 In economic terms, to be truly sustainable, the overall demand for natural resources (also known as ecological footprint) must be less than the nature’s renewable supply of resources (also known as biocapacity). Law of Demand 🌳The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good.  🌳In other words, the higher the price, the lower the quantity demanded.  🌳The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good. 🌳As a result, people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more. .

 Economic development 🌳Economic development is the quantitative and qualitative change in an economy. 🌳Economic development refers to the reduction and elimination of poverty, unemployment and inequality with the context of growing economy. 🌳Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. 🌳Economic development includes process and policies by which a country improves the social, economic and political well-being of its people. 🌳Economic development is multi-dimensional in nature as it focuses on both income and improvement of living standards of the people. 🌳Economic development is concerned with the happiness of public life. 🌳Economic development comes after economic growth. It is a positive impact of economic growth. 🌳Economic development also refers to: 🌱provision of sufficient and effective physical and social infrastructures 🌱equal access to resources 🌱participation of...

 Economic growth 🌱Economic Growth is the positive change in the indicators of economy. 🌱Economic Growth refers to the increment in amount of goods and services produced by an economy. 🌱Economic growth means an increase in real national income / national output. 🌱It refers to an increase over time in a country’s real output of goods and services (GNP) or real output per capita income. 🌱Economic growth is single dimensional in nature as it only focuses on income of the people. 🌱Earlier, economic growth was only measured in terms of Gross Domestic Product (GDP). 🌱At present, it is measured in terms of GDP, Gross National Income (GNI) and Per Capita Income. 🌱Economic Growth is the precursor and prerequisite for economic development. 🌱Indicators of economic growth are GDP, GNI and per capita income. 🌱Economic growth relates a gradual increase in one of the components of GDP; consumption, government spending, investment or net exports. 🌱It is also considered as a traditional m...

The main indicators used to monitor the performance of an economy are: Consumer spending Exchange rate Gross domestic product GDP per capita GNP Stock Market Interest rate Government debt Rate of Inflation Unemployment Balance of Trade

Types of Economy 1. A market-based economy is one where goods and services are produced and exchanged according to demand and supply between participants (economic agents) by barter or a medium of exchange with a credit or debit value accepted within the network, such as a unit of currency. 2. A command-based economy is one where political agents directly control what is produced and how it is sold and distributed.  3. A green economy is low-carbon, resource efficient and socially inclusive. In a green economy, growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services. 4. A gig economy is one in which short-term jobs are assigned or chosen via online platforms. 5. New economy is a term that referred to the whole emerging ecosystem where new standards and practices were introduced, usually as a result of technological innov...

 What is Economy 👁An economy (from Greek οίκος – "household" and νέμoμαι – "manage") is an area of the production, distribution and trade, as well as consumption of goods and services by different agents.  👁In general, it is defined 'as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of resources'. 👁 A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, as main factors.  👁These factors give context, content, and set the conditions and parameters in which an economy functions.  👁In other words, the economic domain is a social domain of interrelated human practices and transactions that does not stand alone.