ECON 103 Lecture Notes - Lecture 1: Microeconomics, Vise, Atmospheric Pressure
25 Aug 2016
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Document Summary
It has a wide scope that asks and answers how recourse is arranged in the way it is. We leave in a world of inescapable scarcity :- Scarce doesn"t mean hard to get in economics rather it means there is no enough recourse to satisfy every human need at zero cost. Goods refer to anything that is valuable to people including services. Scarcity implies choice which then implies cost. If something is scarce we have to make some choice based on our priority list of the goods. While choosing something over the other it will cost us. We have and we want beer as well as tomatoes. If we chose tomatoes over beer, then the cost of our choice is beer and vise versa. Cost doesn"t always mean money since it might as well include service. Humans are considered to be rational and self interested.
