ECN 104 Lecture Notes - Lecture 1: Microsoft Powerpoint, Birds Eye View, Fallacy
10 Sep 2015
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Document Summary
Introduction to ecn104: class 1 (sept 9, 2015) The study of the use of scarce resources to satisfy unlimited human. The social science concerned with the efficient use of scarce resources to obtain the maximum satisfaction of society"s unlimited wants. The social science concerned with how individuals, institutions and society make optimal (best) choices under conditions of scarcity. The social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Scarcity leads to choice, incentives lead to decisions which then leads to opportunity. Opportunity costs: in terms of the (highest-valued) alternatives foregone. The economic problem of a customer: limited income, unlimited wants: bundle of goods/services, the budget line: list out the options/shows the possible combinations. Resources are used to produce goods and services. Society gives up something else to get a good produced. If marginal costs > marginal benefits, don"t do it.
