Chapter 2

1. Equilibrium Point: A point where the supply equals the demand

2. Economic System: The policy of the shows a particular business structure

2.1. Free market Sysytem: Decisions made between seller and buyer. [CAPITALISM]

2.2. Planned System: a government controlled system especially in factor of production [SOCIALISM] & CAPITALISM]

2.3. Nationalization and Privatization

3. The Forces of Demand and Supply

3.1. Demand: Willingness and ability to buy

3.2. Supply: The amount the seller able to produce

4. Economic Relation

4.1. Business Cycle

4.1.1. Recession

4.1.1.1. National income drops

4.1.1.2. Unemployment rate increases

4.1.1.3. GDP drops

4.2. Unemployment

4.2.1. Frictional

4.2.2. Structural

4.2.3. Cyclical

4.2.4. Seasonal

4.3. Inflation & Deflation

4.4. Policies

4.4.1. Monetary

4.4.2. Fiscal

4.5. PPI: Measure of price trends at the producer and wholesaler levels

4.6. Price Index & GDP

4.6.1. CPI: Measures changes in the prices of a representative collection of consumer goods and services

4.6.2. GDP: C+I+G+(X-M)

4.7. Taxation

5. Macroeconomics:

5.1. Firms

5.1.1. Government

5.1.1.1. International

6. Economy: The sum of all economic activities in a specific region

7. Economics: Its a study of behaviorism of society in allocting scared resources and producing G&S

8. What is Economy?

8.1. Microeconomics:

8.1.1. Consumer

8.1.1.1. Industry

9. Factors of Production

9.1. Natural

9.1.1. sumber dari alam semulajadi: land,water supply

9.2. Resources

9.2.1. Human

9.2.1.1. All people worked

9.3. Capital

9.4. Entrepreneurship

9.5. Knowledge