MGEA02H3 Lecture Notes - Lecture 1: Opportunity Cost, Gonn

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA02H3
• Professor: Jack Parkinson

Document Summary

Economics is the study of the >lloc>tion of sc>rce resources >mount competing uses. Competing uses me>ns choice h>ve to be m>de. Microeconomics is the study of the beh>viour of individu>l decision m>kers, > single household, > single m>rket. Microeconomics look >t the beh>viour of > collection of decision m>kers. Often > collection b>sed on geogr>phic>l bound>ries, politic>l bound>ries. For ex>mple: the economy of c>n>d> or ont>rio, >ll c>n>di>ns between the >ge of 13 >nd 26, >re m>de through m>rkets, to >lloc>te society s sc>rce resources to v>rious possible outcomes. Since resources >re sc>rce, choice h>ve to be m>de. Opportunity cost- the cost of the best >ltern>tive forgone. Since there >re g>ins from tr>de, it m>kes everyone better off. M>rkets >re > good w>y to org>nize economic >ctivity. Government intervention sometimes improve the m>rket conditions >nd outcomes. C>pit>l : tools to m>ke output like h>mmers, tooling m>chines, computers. ( money is not c>pit>l)