Hello and welcome to your first economics lesson at my school. Today we will be exploring some basic economic terms and briefly looking into the circular flow model.

Definitions

First I'd like to start of by defining some key words you will come across in these lessons if you need me to elaborate more on them please contact me via dms.

Want: A want is simply put as a good or service that is not required for survival purposes. Some examples would include; musical instruments, music, a car or a dog wash.

Need: A need is something required for means of survival. Needs include shelter, food, water and even clothing.

Consumers: are people who purchase goods and services from firms.

Producers: are firms and people who make goods and provide services in a market.

Market: A market is a platform where consumers and producers interact for the purpose of exchange. [We will go into more depth in markets soon.]

Demand: demand is the quantity of a good or service consumers are willing and able to purchase at a certain time, place and price.

Supply: supply refers to the amount of a good or service that all firms in a market are willing to produce for a certain price and at a particular time and place.

Circular flow of income

Here is a simple model of the circular flow.

[Will finish off later going out]