ECON 3240 Lecture Notes - Optimal Decision, Opportunity Cost, Marginal Utility
Document Summary
First focus: the study of human behaviour regarding the production and exchange of goods and services. Second focus: the interaction of economic agents (households and firms) in markets. Third focus: the interaction of markets in an economy. Wages, salaries and supplementary labour income 69. 6% Income from non-farm unincorporated business including rent 8. 5% Firms operates in financial markets, commodity serviced markets, and labour markets (households, companies, government agencies) usually in hr. Labour economic widens your horizon, see outside of the box, see the firm outside of the economic environment. It is a social science, it deals with human being and behaviour: assumption that human beings make that are driven in self-interest. Utilitarianism: people are driven by self-interest; people pursue their self-interest would lead to the social welfare of happiness. If the price goes down, the demand goes up. Price mechanism is an incentive mechanism: law of diminishing marginal utility.
