Reviewer Economics Economics a science which studies human behavior as a relationship between ends and scarce means which

h have alternative uses. It is a social science that analyzes the production, distribution, and consumption of goods and services. Gross National Product (GNP) the market value of all products and services produced in one year by labor and property supplied by the residents of a country/ accumulated products a country can produce. Economic Growth refers to sustained increase in output as measured by the gross national product/ goods and services rendered. Economic Development refers to a complex process describing changes in economic and non economic institutions and also includes aspects necessary for economic growth to take place. Problems of Developed and Developing Countries Population Growth Literacy Technological Development Nationalism Microeconomics is the economic analysis of the individual economic unit, whether he be an individual or an enterprise. This subject deals with the problems of individual choice, demand, costs of production of the firm and the structure of markets. Macroeconomics concerned with aggregative economic analysis. It deals with the study of national income, consumption, investment, savings and general price levels. 2 Units Of Economics Individual/ Society Firms/ Industry 4 Basic Problems of Economics Production What kinds of products we are to produce, and are most consumed. Distribution How many Products are we going to give? Consumption - What Products are being consumed the most. Growth Rate Population. Elementary Digression Y=f(x) Y= a+bx Economic System is a system of social organization that governs the ways men use productive resources such as land or labor to satisfy their needs. Modern Economic Systems: Capitalism controlled by individuals and private companies. Socialism industries and services owned by the public. Communism communal ownership of all factors of production controlled by the government. Facism The Dictator Controls the system. Mans Needs and Wants

Abraham Maslows Hierarchy Of Needs Physical/Physiological to keep alive Security to feel safe Social To be Social Ego To be respected Self Actualization To do work Circular Flow Of Production An economic System tries to solve the basic problems of scarcity: What to produce How to produce For Whom to produce Production is an economic activity which concerns itself of the development of resources and their transformation into actual goods and services to satisfy human wants. It aims to produce goods and generate income. Gross National Product (GNP) is the sum of all the market values of all final goods and services produced by the economy in a given period. Components of GNP: Personal Consumption Expenditures Government Purchases of Goods and Services Gross Private Domestic Investments Net Exports Approaches In Measuring GNP: Expenditure Approach o GNP = C + I + G + (X M) C = Personal Consumption Expenditure I = Investment G = Government Expenditure X = Export M = Import Income Approach o GNP = PI + GI + CI + ITNS + DA PI = Personal Income GI = Government Income From Capital CI = Corporate Income ITNS = Indirect Taxes net of subsidaries DA = Depreciation Allowance Production or Industrial Origin Approach o GNP = AG + IN + SE + NFY AG = Sum Value Of Agricultural Sector IN = Sum Value Of Industry Sector SE = Sum Value of Service Sector NFY = Net Factor Income From Abroad Fiscal Policy - is concerned with the manipulation of the inflows (government spending) and outflows (taxes) of the government sector. Its actions are oriented towards the economy and promoting economic growth. In order to be equal in a state of equilibrium, outflows must be equal to its inflows. S+T=I+G Where:

S Savings T - Taxes I - Investment G Government Expenditure Taxation is an important tool in fiscal policy and a source of domestic savings. Sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. Gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. Value added tax or value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. Estate tax in the United States is a tax imposed on the transfer of the "taxable estate" of a deceased person, whether such property is transferred via a will, according to the state laws of intestacy or otherwise made as an incident of the death of the owner, such as a transfer of property from anintestate estate or trust, or the payment of certain life insurance benefits or financial account sums to beneficiaries. Personal Income Tax (PIT) is a direct tax levied on income of a person. Property tax (or millage tax) is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality. Corporation Tax is a tax on the taxable profits of limited companies and some organisations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies. Inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate (total value of the money and property) of a person who has died. Excise or excise tax (sometimes called a duty of excise special tax) is commonly referred to as an inland tax on the sale, or production for sale, of specific goods; or, more narrowly, as a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees'wages, also known as withholding tax, pay-as-you-earn tax (PAYE), or pay-as-you-go tax (PAYG). The second kind is a tax that is paid from the employer's own funds and that is directly related to employing a worker, which can consist of a fixed charge or be proportionally linked to an employee's pay.

Inflation is a sustained and general increase in all or nearly all of the markets in an economy. Economic Development is a progressive and dynamic process of improving human conditions such as the reduction of poverty, illiteracy and etc..