Class Notes (784,733)
Canada (481,323)
ECON 227 (17)
Lecture

Econ 219 Lecture 2.docx

4 Pages
103 Views
Unlock Document

School
McGill University
Department
Economics (Arts)
Course
ECON 227
Professor
Christopher Ragan
Semester
Fall

Description
ECON 219 9/11/2012 8:41:00 PM th Tuesday, September 11 , 2012 Chapter 1 The Complexity of the Modern Economy  The self-organizing economy  Who or what provides the goods and services individuals desire?  Early economists noticed that the interaction of self-interested people creates a spontaneous social order – the economy is self- organizing.  Self-interest, not benevolence, is the foundation of economic order. Main Characteristics of Market Economies  Self-interest guides individuals  Individuals respond to incentives  Prices and quantities are set in (relatively) free markets in which individuals trade voluntarily.  Institutions, created by the state, protect private property and enforce contractual obligations. Scarcity, Choice, and Opportunity Cost  Economics is the study of the use of scarce resources to satisfy unlimited human wants.  Resources o A society’s resources are usually divided into land, labor, and capital. o Economists refer to resources as factors of production o Out puts are goods (tangibles) or services (intangibles)  Scarcity and Choice o Resources can produce only a fraction of the goods and
More Less

Related notes for ECON 227

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.

Submit