ECON 201 Lecture Notes - Lecture 1: Opportunity Cost, Decision-Making, Tim Hortons

• School: Concordia University
• Department: Economics
• Course: ECON 201
• Professor: Moshe Lander

Document Summary

Economy (the study of choices): it is a social science (experiment on people) that studies how we allocate limited resources to satisfy unlimited ones. Scarcity ( shortage): state where the ressources cannot satisfy the wants. To deal with scarcity, you need to prioritize : make choices, which means trade offs between ef ciency and equity. Equity : allocating ressources equitably. (it is a loaded issue that doesn"t really make sense because not everybody would agree with it. When ef ciency is used more than equity the consequence is a higher standard of living. Making a choice always means giving up on something (e. g. : going to class means giving up on sleep or on lunch, ) With every decision comes a choice, with every choice comes a decision, with every decision comes a trade off and with every trade off comes an opportunity cost.