Basic economic concepts
- Benefit : results from the difference in costs and income from economic activity, if the expenses are higher losses will occur.
- Well , good is whatever satisfies a need and has a value .
- Service : is a benefit intended to meet a personal or social need but not to the production of an object.
- Cost of living and inflation : the cost of living is the minimum amount of expenditure necessary to obtain the goods and services; to calculate the value of adding a set of products and this result defines the CPI price index consumption. Rising commodity prices is what we call inflation.
- Investment and speculation : investment is the amount of money spent to start a business or maintain and improve it in order to make a profit. When you get a quick profit of a business based only on the price of goods it comes to speculation.
- Market : The set of consumers who demand goods and services to all the producers that offer them.
- Production and productivity , called production goods and services generated by an economic activity. The relationship between employees and the media produced determines productivity. If you get high productivity using limited means, it is said that the production is high. When used in many ways but productivity is low, productivity is low.
- Gross domestic product (GDP) and GDP per capita: GDP is the total value of goods and services produced in a territory for a year. GDP reflects the wealth or income generated in that territory, but to know what the average income or wealth of its population, ie GDP per capita, divide the GDP of the territory concerned by the number of its inhabitants.