by - Production
Production refers to the process of creating goods and services by combining various resources like land, labor, capital, and entrepreneurship. It transforms inputs into outputs to satisfy human needs and wants.
- Producer
A producer is an individual or entity that manufactures or supplies goods and services for consumption, aiming to meet demand and generate profits.
- Exchange
Exchange involves trading goods or services, usually using money as a medium, to facilitate the transfer of ownership between buyers and sellers.
- Distribution
Distribution refers to the allocation of produced goods and services among people or markets, ensuring they reach the end-users.
- Market
A market is a platform where buyers and sellers interact to trade goods and services, determining prices through supply and demand dynamics.
- Consumer
A consumer is an individual or entity that purchases and uses goods or services to satisfy personal needs and wants.
- Consumption
Consumption is the act of using goods or services to fulfill needs, reduce scarcity, or derive satisfaction.
- Utility
Utility measures the satisfaction or benefit a consumer gains from consuming a good or service.
- Wealth
Wealth encompasses all valuable resources owned, including physical, financial, or intellectual assets, that contribute to economic well-being.
- Production Possibility Curve (PPC)
The PPC illustrates the maximum combinations of two goods an economy can produce, given finite resources and technology.
- Consumer Surplus
Consumer surplus is the difference between the amount a consumer is willing to pay and the actual price paid for a good or service.
