ECON101 Lecture Notes - Information Revolution, Microeconomics, Macroeconomics
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ECON101 Full Course Notes
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Economics questions/problems arise because we want more than we can get. Scarcity = the inability to satisfy our wants. Scarcity leads to choice, and we make choices depending on the incentives. Incentive = reward/penalty that encourages/discourages an action. = social science that studies the choices that individuals, businesses, governments and societies make as they cope with scarcity, and the incentives that influence and reconcile those choices. Microeconomics = study of individuals and businesses. Macroeconomics = study of performance of national and global economics. Goods and services = objects people value and produce to satisfy wants. Social interest = best for society as a whole a. efficiency. = when resources are used at the lowest possible price and in quantities that give the greatest benefits b. equity. = expansion of international trade, borrowing/lending, and investment. Good for consumers (lower prize), and for big companies (lower cost) Bad for low-wage worker and companies in high-prize countries (can"t compete)