ECO 1104 Lecture Notes - Free Good, Planned Economy, David Grey

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

Economics: the study of how society manages its scarce resources. Efficiency: the property of society getting the most it can from its scarce resources. Equity: the property of distributing economic prosperity fairly among the members of society. Opportunity cost: whatever must be given up to obtain some item. What makes us take/ what motivates human behavior? . Material world: human wants are unlimited because people are greedy. Human wants are partially satisfied by producing and then consuming goods and services. Exchange activities- coordination between them theory of markets. Two primary types of economic actors: consumers & producers who interact/ exchange within markets in a capitalist economy. An economy is an institution in which these actors produce, consume, and exchange. Economy types: centrally planned economy, robinson road economy (no market at all, one producer, one consumer) Any economy produces goods and services by combining resources (land, labour, capital) into a technology of production.