ECON 1100 Lecture Notes - Lecture 1: Curtiss R3C, Opportunity Cost, Free Market
9 Sep 2015
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Document Summary
Economics: the study of the use of scarce resources to satisfy unlimited human wants. 2 key concepts: resources: factors of production, land on top and below; soil, oil, etc, labour all the work people do; time, effort, capital not limited to money, equipment, machines. Services: intangible (not physically felt) haircut, school, consultant, driving. Production: act of producing goods and services; giving a massage. Consumption: act of using the goods and services: scarcity, water, oil, diamond b. Implies that choices must be made, and making choices implies the existence of costs: paintings: only one original, scarcity means sacrifice: give money to purchase. Opportunity costs: cost of using resources for a certain purpose, measured by the benefit given up by not using them in their best alternative use. Production possibilities boundary curve showing alternative combinations of commodities can be attained if all available resources are used efficiently boundary between attainable and unattainable output combinations ex.
