Economics 1021A/B Lecture Notes - Economic Model, Linear Equation, Information Revolution

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Irene Trela

Document Summary

Scarcity inability to satisfy wants with limited - time, resources. Incentive - reward that encourages an action or a penalty that discourages an action. Economics - social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Micro & macro: micro the study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments, macro - study of the performance of the national and global economies. In canada, agriculture accounts for 2 percent of total production, manufactured goods for 20 percent, and services (retail and wholesale trade, health care, and education are the biggest ones) for 78 percent. In china, agriculture accounts for 11 percent of total production, manufactured goods for 49 percent, and services for 40 percent. Factors of production: land, labor, capital. Human capital quality of labor force (knowledge)