ECON 1BB3 Lecture Notes - Lecture 1: Limited Liability, Deflation, Sole Proprietorship
adrianagreen0110 and 39672 others unlocked
11
ECON 1BB3 Full Course Notes
Verified Note
11 documents
Document Summary
Economists use the term household as the simplest into on demand side of product markets and supply side of resources markets, they can also vary in size. Another assumption is that all resources are owned by households and they use them to satisfy their unlimited wants (labour, entrepreneurship: the government gives households transfer payments, which are benefits given as outright grants. Firms first started in great britain in the 1750s. No skills or special resources are required for tasks (ex: sweeping the floor), household production avoids taxes, household production reduces transaction costs, and technological advances increase household productivity. The government provides public goods and funds them with tax money: dealing with externalities- such as pollution (negative externality). Full employment, price stability, and economic growth- through taxing and spending, the. Sources of government revenue federally is individual income tax, provincial relies on income and sales tax, and local governments rely on property tax.