APPLIED ECONOMICS

Types of Economics

TYPES OF ECONOMICS
1. Household Economics – the family is the most popular use of economics. At this stage, someone
who
knows the economic principles would be able to improve the functioning of the household.
2. Business Economics – when an individual or a group of people starts to work, they are part of the
business economy system in their workplace. In this form, you're dealing with rent, salaries,
income, and others.
3. National Economics – Economic factors that influence the country as a whole. Deals with the
control of a nation's revenue, spending, wealth or capital.
4. International Economics – The highest stage of economic operation concerning the industry of
one country with other countries such as trade, tourism, exchange rates.

The Economic Agents/Stakeholders:

1. Consumers - are individuals or companies purchasing goods or services. They are individuals or
other economic organizations making use of a good or service. In addition, they don't sell on the
item they purchased.
2. Producers- Firms who produce goods and services. They may be individual entrepreneurs (self-
employed) or large multinational companies.
3. Government/ the public sectors- Attempt to maximize the well-being of society
* The agents interact in a particular territorial, social, natural and/or cultural framework which
determines their relationships within the market.

BASIC TERMS TO BETTER UNDERSTAND ECONOMICS

Goods- anything used to satisfy your needs and wants.
*tangible goods- a physical object or product that can be touch
*intangible goods- a product that cannot be touch, like insurance policy
Classification of Goods according to EXAMPLES:
use:

1. Consumer goods- those that yield Soda, bread, juices, water, etc.
direct satisfaction to consumers

2. Capital/ industrial goods- are those Machinery, buildings, equipment

goods that help to produce other goods
that directly or indirectly meet
consumers ' needs.

Medicines
3. Essential goods- goods that are
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consumed to satisfy the basic needs of
man

4. Economic goods-goods that are https://www.climamarket.eu/en/wall-split-air-conditioner-lg-

s09et
useful and scarce; they need to be paid
for their use with value attached to
them and a price. If a good is so
abundant, and it can meet the needs of
all without anyone paying for it, then
that good is free. The air is free, but the
air-conditioned air is an economic good.

5. Luxury goods- are goods that are Luxury Car

not necessary, but are highly valued
and linked to people who are affluent or
rich. For several purposes, they are
purchased: to encourage self-worth and
status, or for the product's quality and
craftsmanship.