Economics Lecture Notes

Introduction

• Video covers basic concepts of economics.
• Topics include needs, wants, demand, supply, demand curve, supply curve, market, market equilibrium, utility, consumption, consumer surplus, law of diminishing marginal utility, price, value, GDP, GNP, factors of production, national income, and per capita income.

Needs and Wants

Needs

• State of self-deprivation; starting point of marketing.
• Types: physiological (food, clothing, shelter), social (belonging, affection), cultural, and individual.

Wants

• Desires for specific satisfiers of needs.
• Influenced by culture, social class, and personality.

Demand and Supply

Demand

• Human wants backed by ability and willingness to buy.
• Influenced by price and quality.

Supply

• Amount of commodity sellers can offer at a certain price and time.

Laws

• Law of Demand: As price decreases, demand increases, and vice versa.
• Law of Supply: As price increases, supply increases, and vice versa.

Schedules and Curves

• Demand Schedule: Table showing price vs. quantity demanded.
• Supply Schedule: Table showing price vs. quantity supplied.
• Demand Curve: Graphical representation of demand.
• Supply Curve: Graphical representation of supply.

Market Equilibrium

• Intersection of demand and supply curves.
• Equilibrium price and quantity are where quantity demanded equals quantity supplied.
• Excess Supply: Surplus; quantity supplied exceeds quantity demanded.
• Excess Demand: Shortage; quantity demanded exceeds quantity supplied.

Utility and Consumption

Utility

• Capacity of a product to satisfy needs.

Consumption

• Using a product to finish its utility.

Consumer Surplus

• Difference between what consumers are willing to pay and what they actually pay.

Economic Surplus

• Consumer Surplus: Willingness to pay minus market price.
• Producer Surplus: Market price minus economic cost.
• Total Surplus: Sum of consumer and producer surplus.

Law of Diminishing Marginal Utility

• Additional units of a commodity provide less utility.
• Impacts pricing strategies.

Price vs. Value

• Price: Amount paid for a product.
• Value: Satisfaction or utility gained from a product.

GDP and GNP

GNP

• Total value of goods/services produced by a country's citizens, domestic and abroad.
• Formula: GNP = C + I + G + (X - M)

GDP

• Total value of goods/services produced within a country.
• GDP = GNP - net foreign income.

Factors of Production

• Land: Income from rent.
• Labor: Income from wages.
• Capital: Income from interest.
• Organizer: Income from profit.

National and Per Capita Income

National Income

• Sum of all income payments to factors of production.

Per Capita Income

• Average income per person.

Conclusion

• Overview of key economic concepts and terms: needs, wants, demand, supply, market equilibrium, utility, consumption, consumer surplus, law of diminishing marginal utility, price, value, GDP, GNP, factors of production, national income, per capita income.