Economics 1021A/B Lecture Notes - Opportunity Cost, Free Good, False Advertising

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

Document Summary

Adam smith (scottish philosopher) 1776 with publication of the wealth of nations. Smith was curious how commodity buyers wishes met by firms i. e. why the economy functions with no controls might expect chaos but order existed. This paradox prodded his curiosity and economics was born. For smith prices did everything they changed until amount firms wished to sell was approximately equal to what buyers wished to buy. Smith analyzed with careful use of logic and as did most other famous economists (even karl marx). Need a careful definition people often have misconceptions about what it is. Not the study of how to run a business or accounting or stock market analysis. Tries to figure out what factors determine: what goods get bought and sold, how much of these goods get bought and sold and why the price of the good is what it is. Economics the study of the prices and quantities of goods produced and consumed.