Economics 1021A/B Lecture 1: Lecture 1
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24 Oct 2015
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ECON 1021A/B Full Course Notes
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Microeconomics is the study of individuals and businesses. The economic problem: opportunity costs the best alternative foregone the value that you could have gained by doing the next best alternative. Five questions that are asked: what to produce, how to produce, for whom to produce, where to produce, when to produce. Production resources (factors of production) resources from nature (land, raw materials like minerals, water) Capital the processed materials, equipment, buildings, used in production. Entrepreneurship initiative, management, risk-taking is the human resource that organizes land, labor and capital. Refers to the people organizing and managing different firms in order to generate capital. Economic thinking: choice, tradeoff and opportunity costs, margins and incentives. Marginal cost the cost of an increase in an activity. Marginal benefit the benefit that arises from an increase in an activity. Economics is the study of choices that people make when wants exceed resources. Spending money on one thing, disallows spending on another.
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