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The Goal of the Basic Notions

By Bernard

The goal of this course is to identify and define the fundamental notions of the economy.

At the end of the course, the student wil be able to:

  1. Define and explain the notions of value, need, scarcity, oportunity, productivity, profitability, return on investment and economic system;
  2. Explain the economic method;
  3. Define the tools of the economists.

In the economy, the basic notion is the value of goods or services.  These are defined in terms of quantity and quality.  This is what the economists are doing, with the help of their original method and tools.

In short, the needs and scarcity create the market.  Opportunity and productivity animate the market.  The production is distributed to be sconsumed.  On the way, the wealth is created and some people can accumulated more than others.  This is the economy!

The market itself, with the suply and demand model, will be seen in another book.<