Sure!
Here's a bunch of well-organized notes for Economics—covering
key areas that are typically included in high school or intro-level college
courses. Let me know if you want to dive deeper into any topic or if you're
studying for a specific exam (like AP Econ, A-levels, etc.).
📘 Economics Notes
🧠 What is Economics?
Definition: The study of how people choose to use scarce resources
to satisfy unlimited wants.
Branches:
o Microeconomics: Focuses on individual agents (households,
firms).
o Macroeconomics: Looks at the economy as a whole (GDP,
inflation, unemployment).
💰 Basic Economic Concepts
Scarcity: Resources are limited, wants are unlimited.
Opportunity Cost: The next best alternative foregone.
Trade-offs: Choosing more of one thing means having less of
another.
Incentives: Motivators that influence behavior.
Marginal Analysis: Examining decisions based on additional
benefits vs additional costs.
📊 Economic Systems
Traditional Economy: Based on customs and traditions.
Command Economy: Government makes all decisions (e.g., North
Korea).
Market Economy: Decisions made by individuals and businesses
(e.g., USA).
Mixed Economy: Combines elements of command and market
(most modern economies).
📈 Supply and Demand
Law of Demand: As price ↓, quantity demanded ↑ (inverse
relationship).
Law of Supply: As price ↑, quantity supplied ↑ (direct
relationship).
Equilibrium: Point where supply = demand.
Shifts:
o Demand shifts due to: income, tastes, prices of
substitutes/complements, expectations, number of buyers.
o Supply shifts due to: input costs, technology, expectations,
number of sellers.
🏦 Macroeconomic Indicators
Gross Domestic Product (GDP): Total value of goods/services
produced in a country.
o Real GDP adjusts for inflation.
Unemployment Rate: % of labor force that is jobless and seeking
work.
Inflation: General rise in price level.
o Measured by CPI (Consumer Price Index).
o Hyperinflation = extreme inflation.
o Deflation = decline in price levels.
💵 Money & Banking
Functions of Money:
o Medium of Exchange
o Store of Value
o Unit of Account
Types of Money:
o Commodity (e.g., gold)
o Fiat (government-issued)
Federal Reserve (The Fed): Central bank of the U.S.
o Controls money supply via monetary policy.
🛠️Fiscal vs. Monetary Policy
Fiscal Policy (Gov’t):
o Tools: Taxes and government spending.
o Used to stimulate or slow down the economy.
Monetary Policy (Central Bank):
o Tools: Interest rates, reserve requirements, open market
operations.
o Goal: Control inflation, stabilize currency, promote
employment.
🌍 International Trade
Absolute Advantage: Ability to produce more of a good.
Comparative Advantage: Ability to produce at lower opportunity
cost.
Trade Barriers: Tariffs, quotas, subsidies.
Exchange Rates: Determine how currencies are traded.
🧾 Market Structures
Perfect Competition: Many firms, identical products, free
entry/exit.
Monopolistic Competition: Many firms, differentiated products.
Oligopoly: Few large firms dominate (e.g., auto industry).
Monopoly: One firm controls the market (e.g., utilities).
🧮 Elasticity
Price Elasticity of Demand:
o Measures responsiveness of demand to price changes.
o Elastic (>1), Inelastic (<1), Unit Elastic (=1).
Cross-price elasticity: Impact of one good’s price change on
another.
Income elasticity: Change in demand due to income change.
🧾 Externalities & Market Failure
Externality: Cost or benefit to third party not involved in
transaction.
o Positive: Education, vaccines.
o Negative: Pollution, noise.
Public Goods: Non-excludable and non-rival (e.g., national
defense).
Tragedy of the Commons: Overuse of shared resources.
Let me know if you want:
Flashcards
Diagrams (like supply/demand curves)
Practice questions
Notes focused on Micro or Macro only
Want me to save these as a PDF or doc for you?
