EC 201- Midterm Exam Guide - Comprehensive Notes for the exam ( 38 pages long!)
Document Summary
Provides a framework to diagnose problems all over the world. Scarcity- conveys the idea that resources are limited. Economics- the stud(cid:455) of people"s (cid:272)hoi(cid:272)es whe(cid:374) the(cid:396)e is s(cid:272)a(cid:396)(cid:272)it(cid:455) Factors of production- (aka production inputs/resources) used to produce goods and services. Natural resources- provided by nature to produce goods and services ex. Labor- mental and physical human effort to produce goods and services. Physical capital- stock of equipment, machines, structures, and infrastructure to produce goods and services. Human capital- knowledge and skills acquired by a worker through education and experience to help produce goods and services. Entrepreneurship- the effort used to coordinate the factors of production (all of the above) to produce and sell products. Many of our choices occur within markets, which enable us to buy and sell things through institutions/arrangements. There are always trade-offs in everything that you do. Economics gives us options in a choice, not what to choose.
