Economics Explained So You Can Understand It

In “Economics Explained So You Can Understand It” episode #117, Meredith Curtis explains what economics is in very simple terms so even the most economic-phobic teen or adult can understand. GDP/GNP, Macroeconomics, and microeconomics will make sense to you now. Get rid of intimidation! You can understand economics! Meredith believes that understanding economics is a blessing, especially when we understand biblical principles and apply them to our lives.

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Show Notes

So many people I meet feel intimidated by economics. Why is that?

What Economics Is

Economics is the study of the production, distribution, and consumption of goods and services according to Webster’s dictionary.

Goods.

Services.

The dollar bill in your purse.

Economics

What people make and do and how those things are sold
Studying how, why, and where money goes
Who ends up with what and how it gets there

Macroeconomics

The big picture

Economic Systems

Command (Government controlled like socialism, communism, fascism)
Free Market (People controlled, capitalism)
Mixed

What is happening in the world that makes people buy more stuff?

Flow & Distribution of Wealth

Supply & Demand (Big Picture)

Microeconomics

Consumer Behavior

Business Behavior

Production Cost/Customer Willing to Pay/Sweet Spot

GNP/GDP

Economics looks at how people get what they want, who gives it to them, how they get it, and how much they get.

GNP (Gross National Product) or the GDP (Gross Domestic Product)

Total amount of all the good and services that are sold.

Economic Cycle

The economy goes in cycles of growing and recessing. This cycle, if not tampered with, is natural and normal. People go through seasons of spending and saving. A healthy economy has seasons of expanding and decreasing flowing gently from one to another. We will talk more about this cycle next time.