Economics 1021A/B Lecture : Term 1 Part 1 Review.docx
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ECON 1021A/B Full Course Notes
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Economical questions arise because we want more than we can get. What we can get, is limited by time, income earned and prices must pay. Productive resources: gifts of nature, human labour and ingenuity, tools and equipment. These resources limit what we can get as a society. Choices we make depend on the incentives faced. Incentives: reward that encourages an action or penalty that discourages one. Economics: the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and incentives that influence and reconcile choices. The good- the information age and all the benefits that it brings. Ex: when a government spends more to combat a recession the defecit might in the end become smaller. Suicide terrorists tend to be relatively rich, not poor. It is not restricted to markets or business. Your inability to satisfy all our wants is called scarcity. Because we face scarcity, we must make choices.