ECON 103 Lecture Notes - Lecture 1: Human Capital, Root Mean Square, Information Revolution
4 Sep 2018
School
Department
Course
Professor
Document Summary
Macro is becoming more micro based but still is more about the big picture. It is all about making choices under scarcity. Incentive: reward that encourages an action or a penalty that discourages an action. How do choices determine what, how, and for whom goods and services get produced. Goods and services produced using factors of production. Land: countries can choose to use the land. Capital: quality of labour depends on human capital (education, experience) and capital (machines, tools) Who gets the goods and services depends on the incomes that people earn. Land earns rent, (you can rent it out) Self-interest: choices that you think are the best for you. Social interest: choices that are best for society as a whole. Ef ciency: resource use is ef cient if it is not possible to make someone better off without making someone else worse off. Four topics that illustrate tension between self-interest and social interest:
