Basic Economic Concepts - Poem

Economics is the study of The equipment and machines As prices continue to rise, Unlimited desires, That maximize all of the production, Demand then goes from high to low, And how to deal with all of those, Which maximizes green. This should come as no surprise. As resources expire As the production is taking place, However, as the prices increase, So many wants we have, Maximum efficiency is clear More are willing to provide, Yet resources are so few, For it can all be charted And where the supply meets the demand, So who is dealt just what, On the production possibilities frontier The price equilibrium shall lie. And who then gets to choose? When production lies inside this curve, When the demand is great, Microeconomics is the study of Inefficiency is to blame! But the prices are too low, People and business contemplation, However, points outside the line, A shortage will soon be the result, While macro looks at economic problems Simply cannot be attained! And up, the prices go! Within entire nations However, when the demand goes down, Positive statements are then drawn, And the supply and price both exceed, From scientific method and conclusion, As technology increases though, A surplus of too many goods, While normative is opinion based, Or more resources come to sight Will drop the price, indeed! That are based off one's illusions The maximum production curve May then shift to the right. The economy is complicated, Yet some things are so commonly But the circular flow model shows known-- Another part of economics The flow of all the resources, As some resources become lost, Is the ability to trade And where each product goes To maximize production, But both parties must see benefits, Comes with an opportunity cost So that deals can then be made. From the homes and individuals, Come the factors that production needs, Scarcity is the issue-- But as people look out for themselves, And in return, wages are paid, Limits in resources force one to choose, They somehow help their fellow man! To spend just as they please. And with every opportunity, A concept derived by Adam Smith, There is opportunity to lose. He calls the 'invisible hand'

There are three factors of production, See, one may work hard to provide This is the factor market, That must become well known-- All that he may desire, The firms then produce the goods, The first of which is all the land, And in doing so, produces goods, To send them to the product market, And all the resources that it owns. For others to acquire For people to purchase, as they should!

The second one is labor. As these new goods are created, Yes, economics can be very tough! This involves all that humans do-- And production, too, expands, Yet, if ever you seem lost, All of their physical tasks, The prices are then determined Then give up your free time, and study And their mental knowledge too Where the supply meets the demand! more-- Your opportunity cost! Finally, there is capital-- The law of demand then states,