ECON 40 Lecture Notes - Learning Curve, Comparative Advantage
Document Summary
Economics: study of humans making decisions while facing scarcity. Individual decisions: family decisions, business decisions, societal decisions, every problem facing the world has an economic dimension, economics help understanding on budgets, regulations, and laws. Scarcity: the wants for resources, goods, and services exceed what is available. Division of labor: the production of good or services is divided into different tasks that are performed by different workers, example: restaurant, chef, kitchen help, servers, host, business manager. Janitors: division of labor increases production, dividing tasks required to produce goods means workers and businesses can. Interests: economics of scale, average cost of production decreases as the level of output increases, specialization requires trade and exchange of goods and services.
