ECN 104 Lecture Notes - Lecture 1: Industrial Robot, Capital Good, Opportunity Cost
19 Oct 2016
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How individuals, institutions, & society make choices under conditions of scarcity. Rational decisions by comparing marginal benefits & costs. Which must be lost to produce a product. Our choices are made based on extra benefits & costs: ex. Statement about economic behavior/economy that enables prediction of the probably effects certain actions. Factors other then those considered are held constant. Concerned with: individual units, industries, firms, households etc. Collection of econ. units treated as one. Analysis of facts: to establish cause & effect relationships. Value judgments: about what the econ. should look like. France should undertake policies to make its labour market more flexible to reduce unemployment rates. Need to make choices: unlimited wants -> limited resources. Schedule/curve that shows various combinations of two products a consumer can purchase with a specific money income. Land, labour, capital & entrepreneurial ability used in the prod. of goods. Physical/mental talents of individuals used in producing goods.
