Just short

*Disposable income - income after taxes
*Real disposable income - income after taxes on income have been deducted
*normal goods - goods for which an increase in income leads to an increase in demand
*inferior goods - goods for which an increase in income leads to a fall in demand
*substitutes - competing goods
*complements - goods for which there is joint demand
*private costs - the costs incurred by those taking a particular action
*private benefits - the benefits directly accruing to those taking a particular action
*external costs - the costs that are the consequence of externalities to third parties
*external benefits - the benefits that accrue as a consequence of externalities to third parties.
*social costs - the total costs of a particular action
*social benefits the total benefits of a particular action
*non-excludability - situation existing where individual consumers cannot be excluded from consumtion
*free rider - someone who directly benefits from the consumption of a public good but who does not contribute towards it's provision
*non-rivalry - situation existing where consumption by one person does not affect the consumption of all others.
*quasi-public goods - goods having some but not all of the characteristic of a public good.

Unemployment watch!

economics demand/supply watch!!!!!!!!!!

Infltion and Deflation ( i can't copy diagrams because i've mac )

Infation : defined as a general increase in the price level over a period of time. For more tight people, Inflation - when the prices go up.
Cost - push inflation is caused an increase firms costs due to rising input prices ( wages, raw materials, energy, etc..)
Demand - push inflation is caused by a lot of demand chasing too few goods and services.
 One clever and educational humen said that : Inflation is one of the "evils" in macroeconomics. In fact, price level stability is one of the three main goals of macroeconimics policy. Inflation's effects iclude
* Loss of purchasing power - all prices rise and no income, in real terms people becoming poorer. "real income" is nominal income minus inflation.
* Loss of savings. Savers are negativly effected to inflation.If you put $1000
in the bank at 5% interest today, but there is inflation of 10% in the next year,
then you will have actually lost 5% of your savings. The real interest rate is the
nominal interest rate minus the rate of inflation.
* Higher interest rates for borrowers: In times of high inflation, banks will
raise the interest rates they charge borrowers. A lender charging 4% interest
when there is inflation of 6% will actually be paid back in money worth 6% less
than the money originally lent. To maintain profits, banks must charge a
higher nominal interest rate than the rate of inflation, making it more costly
for firmst and households to borrow financial capital
* Effect on international competitiveness: High inflation at home makes
domestic output less attractive to foreigners, and imports more attractive to
domestic consumers. This could move a country's trade balance towards
deficit.

  Deflation
When the prices go down is sound good, people who don't know about deflation become fools!

*Unemployment: Low demand for goods and services means firms must lay off workers.
*Delayed consumption: With the expectation of future price decreases,households will increase savings and decrease spending. This could lead to a deflationary spiral.
*Declining investment: If firms expect less demand for their output in the future, they'll invest less now, which could result in slower economic growth.
*Cost to borrowers: The real debt burden of borrowers increases as the price level falls. Bankruptcies result as borrower's incomes fall while the value of
the money they must pay back increases.

"East Asian Tigers"

Intersting to know...
THERE ARE MANY similarities between Hong Kong and Singapore. They have both enjoyed high rates of economic growth over the past three decades, averaging six percent a year in real terms. They have made the transition from poverty to newly industrialized economies in a relatively short time. Both started off as British colonies, with British legal and administrative systems, and made their living as trading ports serving their respective regions. Singapore has been an independent republic since 1965; Hong Kong was returned to China on July 1, 1997. While Hong Kong and Singapore are now the busiest ports in the world in terms of throughput, they have divested from their reliance on trade since the 1960s, climbed the industrial ladder, and are now important international financial centers as well.
"Speculating" or "investing" in a property market in both cities is indeed is the main course of risk-loving locals and foreignes alike. This cities are knowing lke free traders and international fiancial centers with a few restrictions on trade and capital flows, which are many times their GDP.
The economy of Singapure is a highly developed state with mixed economy.While government intervention in the market is kept at a minimum, the state controls and owns firms that comprise at least 60% of the GDP through government entities such as the sovereign wealth fund Temasek. It has an open business environment, relatively corruption-free and transparent, stable prices, and one of the highest per capita gross domestic products in the world. Its innovative yet steadfast form of economics has given it the nickname the Singapore Model. Exports, particularly in electronics and chemicals, and services provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it does not have. Singapore could thus be said to rely on an extended concept of entrepot trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours to carry out such entrepot activities. The Port of Singapore is the busiest in the world, surpassing Rotterdam and Hong Kong. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.



Year Total trade Imports Exports % Change
2000 $273 $135 $138 21%
2001 -9.4%
2002 $432 1.5%
2003 $516 $237 $279 9.6%
2004 $629 $293 $336 21.9%
2005 $716 $333 $383 14%

2006 $810 $379 $431 13.2%

Year Singapore Dollars per US$1
1981   2.0530
1985   2.1213

1990   1.7275
1995   1.4148
2000  1.7361
2005  1.6738
2008  (April) 1.3643
2009  (March) 1.5123

click here ( it will help for understanding)

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLbxBpPsrld71St0rbdRedjL8MgYAyn5XB2ZjxnecbRKwZkJRJ3npTY1kN4V8RYSP8bK-i2uSzNCqftT05Nt75Tes_LL47Jf8plz6RYMMHNc9jTJHuq-XHwdP4UVLajwNIopXuhP97UQg/s1600-h/FinancialFlows-05-gic-temasek.png