COMMERCE 1B03 Lecture Notes - Lecture 5: Physical Capital
7 May 2016
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Document Summary
The word economics comes from the greek word for one who manages a household . The management of society"s resources (e. g. , people, land, buildings, and machinery) is important because resources are scarce. Economics is the study of how society manages its scarce resources to meet peoples unlimited wants. Economists analyze forces and trends that affect the economy as a whole, including: the growth in average income, the fraction of the population that cannot find work, the rate at which prices are arising. Resources: factors of production is another word for resources. Physical capital (machinery, equipment, factories: anything that are used to make other goods or services. There are two types economics: microeconomics focuses on the individual parts of the economy. Micro, comes from the greek word mikios meaning little/small. How firms make decisions and how households and firms interact with one another in different markets places. Firms: should i invest in research and development.
