ECO 1104 Chapter Notes - Chapter 1: Decision-Making, Marginal Cost, Invisible Hand

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: Cristina Blanco- Perez

Document Summary

Economics the study of how people manage and allocate resources in an efficient way. These decisions are made individually, by a group of families, firms and governments and other organisations. Resources can be physical such as money, land, gold mines. They are also intangible such as time, ideas, technology, job experience and personal relationships. Microeconomics the study of how individuals and firms manage resources. Macroeconomics - the study of the economy on a regional, national or international perspective. They are both highly related and interdependent and both are essentially needed in order to get to know about economics better. Rational behaviour it is when pple make choices in order to achieve their goals in the most effective behaviour possible e. g. studying or relaxing. Voting for one party or for another. Scarcity the condition of wanting more than we can get with available resources. it is the (cid:272)o(cid:374)ditio(cid:374) of pple"s (cid:449)a(cid:374)ts e(cid:454)(cid:272)eeding the available resources.