Before I say anything else, just being introduced to the first unit of economics was more than I had expected. I had heard from other people who had taken this class that it was easier than AP government. In my opinion, I think that both are quite the same, except for the fact that you can't solely memorize the material for economics. You have to find an understanding in the concepts in order to be successful in this course. On the other hand, for government, reading out of a textbook or just memorizing notes would easily get you a decent grade. Now enough of that, I'll tell you all about what I have learned about economics in Unit 1.
Here's the notes that I've taken throughout the whole unit (you can click on each image to maximize it):
- Basic Economic Concepts:
- Production Possibilities Curves:
For a better understanding of the production possibilities frontier, I recommend you to watch this video. At around the time 8:15 is when he goes into detail about the curve:
- Supply and Demand:
- Elasticity of Demand:
Hello. I wanted to elaborate on the difference between scarcity and shortage. As you noted, your gas is an example of scarcity. Gas, is of course, a limited resource, and with so many countries such as China and India experiencing a boom in their car industries, the want for gas is so much greater. Hence, gas is scarce because there is an unlimited want for it with limited resources. Now to distinguish scarcity from shortage, think of a flu shot. People are demanding for flu shots, but pharmacies and hospital simply cannot keep up with the demand. Hence, there is a shortage. Your blog looks great by the way!
ReplyDeleteWell, I believe the idea of demand is very agreeable on your notes. As the prices of the goods go up, there would normally be less buyers since people want to save money or use it efficiently. This proves that the main cause of the change in demand is the change in prices.
ReplyDeleteHey so, i would like to elaborate on the unitary elasticity of demand that you mentioned in your notes. I agree that the symbol for unitary elasticity should be "E=1". but what does that mean? Well unitary elastic demand is when percentage change in quantity demanded is equal to the change in price. I really like your blog and good luck in the class!
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