ECON 102 Lecture : Class note Fall 2010_CH1 Completed notes
16 Oct 2011
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People use scare resources to satisfy unlimited human wants. Economics is a social science (behaviour as human) Labour: physical and mental effort used in production. Also the sum of direct costs and indirect costs (direct cost - paid for out of pocket. Indirect cost not paid to anyone but is still a cost) Question: list the direct and indirect costs (opportunity cost) of going to the movies. Choices are made at the margin and are influenced by incentives. A choice at the margin is a decision to engage in one more unit of an activity. A description of how cause and effect work in some part of the economy. Based on assumptions of what is important an be used to either: Fallacy (mistaken belidf/idea) of composition (put things together) What is true of the parts is true of the whole .
