Scarcity: limited availability of things that we desire (not to be confused with shortage). Utility

Productivity => Standard of Living

Inflation is an increase in the overall level of prices in the economy.

The ‘social’ of social science

Social sciences include economics, sociology and psychology, while natural sciences are physics and chemistry etc.

Economic models

Models are used to describe the relationship of economic variables

Y= C+ I + G + (X-M)

Devaluation of Thai baht increases the demand for products and medical services of Thailand

UNIT 2

Direct impact — Tourist dollars spent on easily identified transactions, with positive economic benefits

Direct employment— those jobs that deal directly with the travel and tourism industry ex. Tour guide, hotel owner, flight attendant etc

Indirect impact — secondary transactions generated by the direct spending of tourists