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Lecture 1

ECON 1000 Lecture Notes - Lecture 1: Business Cycle, E.G. Time, Invisible Hand


Department
Economics
Course Code
ECON 1000
Professor
Paul Haddow
Lecture
1

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ECON 1000C
Sept 3/15
Chapter 1: Ten Principles of Economics
What is Economics
Scarcity: the limited nature of society resources
the management of society’s resources (eg. people, land ,buildings, machinery) is
important because resources are scarce
economics: the study of how society manages its scarce resources
how people as consumers,workers,savers and investors make decisions
How People Make Decisions
Principle 1: People Face Tradeoffs
efficiency: the result where society gets the most it can from its scarce resources
equity: disturbing economic prosperity family among the members of society
Principle 2: The cost of something is what you give up to get it
opportunity cost: whatever must be given up to obtain some item:
university education
going to a movie
buying a car
Can be monetary cost or non-monetary cost ( e.g. time spent)
Government Policies: have opportunity costs as well
education vs defence
new infrastructure vs debt reduction
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