ECON 201 Lecture Notes - Lecture 1: North American Free Trade Agreement, Market System, Externality
20 Sep 2017
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Economics: the study of how society manages its scarce resources 1. Scarcity: in relation to wants, existing resources(money, time, etc) are inadequate. Opportunity cost: cost of something in terms of what is given up (giving up sleep for school) Production: act of making goods and services. Consumption: act of using goods and services. Resources (input, factors of production: land: natural resources, labour: human resources, capital: created resources(physical such as tools, buildings, machines, computers) Decision makers: households(consumers): people living under one roof, who are subject to joint. Nancial decisions: make consistent decisions, maximize well-being(what most people are out to do, principal owners of resources, firms(producers): units that employ resources to produce commodity, maximize pro ts(most important, make consistent decisions. Tuesday, september 12, 2017: circular ow diagram. Resource market factors are a source of income for households. Tuesday, september 12, 2017: evolution of market economics, subsistence economics, agricultural revolution/ permanent settlement, possibility of exchange enhanced by:
