Class Notes (786,783)
Canada (482,282)
York University (32,611)
Economics (1,349)
ECON 1000 (453)
all (10)
Lecture

chapter_14 notes.docx

4 Pages
102 Views
Unlock Document

School
York University
Department
Economics
Course
ECON 1000
Professor
all
Semester
Fall

Description
Chapter 1 – What is Economics? Scarcity – the inability to satisfy all our wants Since we face scarcity we must choose between the choices we have Incentive – a reward that encourages an action or a 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 the incentives that influence and reconcile those choices  Microeconomics – the study of the choices individuals and businesses make, the way these choices interact in markets, and the influence of governments  Macroeconomics – the study of the performance of the national economy and the global economy Goods and services – the objects that people value and produce to satisfy human wants  Goods – physical objects  Services – tasks performed for people What? – what is produced changes over time How? – produced by using productive resources “factors of production”  Land “the gift of nature” – what we use to produce goods and services the natural resources ; land itself, minerals, oil, gas, coal, water, air, forests, and fish  Labour – the work time and work effort that people devote to producing goods and services (includes physical and mental efforts) o The quality of labour depends on human capital – the knowledge and skill the people obtain from education, on-the-job training, and the work experience  Capital – the tools, instruments, machines, buildings, and other construction that businesses use to produce goods and services o Financial capital such as money, bonds, and stocks enable businesses to gain funds to buy capital but are not considered capital since they are not a productive resource  Entrepreneurship – the human resource that organizes land, capital, and labour o They come up with new ideas about what and how to produce, make business decisions, and bear the risks that arise from these decisions For Whom? – who consumes the goods and services that are produced depends on incomes that people earn. They earn income by selling factors or production they own  Land earns rent  Labour earns wages  Capital earns interest  Entrepreneurship earns profit Self-interest – a choice that is the best one available for you Social-interest – a choice that leads to an outcome that is the best for society as a whole – an outcome that uses resources efficiently and distributes goods and services equitable (or fairly) among individuals  Resources used efficiently when goods and services are produced at the lowest possible cost and in the quantities that give the greatest possible benefit Conflict between social and self interest  Globalization – the expansion of international trade, borrowing, and lending, and investment  The information-age economy – information revolution was the technological change of the 1990s and 2000s  Global warming –effects on climate change  Natural resource depletion – tropical rainforests and ocean fish stocks are disappearing quickly; when we buy products that destroy natural resources and kill wild fish stocks  Economic instability – a period of financial stress Whatever choice you make, you could have chosen something else. Tradeoff – an exchange – giving up one thing to get something else Guns Versus Butter – the classic tradeoff between “Guns” and “butter” which stand for any pair of goods; if we want more of one thing, we must give up something else to get it: to get more “guns” we must give up some “butter” What tradeoffs – what goods and services are produced depends on choices made by each one of us, by our government, and by the bu
More Less

Related notes for ECON 1000

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.

Submit