ECON101 Lecture Notes - Lecture 1: Employee Benefits, Global Warming, Human Capital
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Economics: social science that studies choices that are made to cope with scarcity and incentives that influence and reconcile those choices. Microeconomics: study of choices that individuals and businesses make, how they interact in markets and how they influence governments. Choices are made using rewards and incentives and penalties. Macroeconomics: the study of the performance of the national and global economies. Sometimes self-interest and social interest are not in line with one another. Self-interest: choices are made based on what you think are best for you. Social-interest: choices based on what is best for society as a whole. Efficiency: maximizing productivity/production with the least amount of resources. Maximizing production of what is wanted and people find most useful. Efficiency is achieved when the available resources are used to produce goods or services: at the lowest possible price and, in quantities that give the greatest possible benefit. Equity is fairness, but economics have a variety of views about what is fair.