Economics 1021A/B Lecture Notes - Human Nature, Marginal Cost, Opportunity Cost

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

Document Summary

The subject is divided into two parts: microeconomics and macroeconomics. Microeconomics is the study of choices made by individuals and businesses, and the influence of government on those choices. Macroeconomics is the study of the effects on the national and global economy of the choices that individuals, businesses, and governments make. Two big questions summarize the scope of economics: How do choices end up determining what, how and for whom goods ****** Good and services are the objects that people value and produce to satisfy wants. Sixty years ago, almost 20% of canadians worked on farms: today that number is 3% Today almost 80% of canadians provide services. Goods and services are produced by using productive resources that economists call factors of production. Land: everything nature gives to us - any feature of the planet. Labour: work time and effort of people. Capital: the tools, machines, equipment, and other constructions that are used to pro- duce goods and services.