ECON 101 Lecture Notes - Lecture 1: Marginal Cost, Market Economy, Capitalism
6 Mar 2019
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Document Summary
Medicine (sickness), physics (curiosity of things like gravity), psychology (mental illness, behavior) Economics: the study of how society manages its scare resources. In most societies resources are allocated by the combined choices of millions of households and firms. Economics: scarcity and choice are the central concepts (the motivation) Definition: economics is the study of how society (households + businesses) manages its scare resources. House with 4 bedrooms --> pool --> magnificent landscaping --> it goes on (o limit to your imagination) Allocation of this resource and economic decision making (the scope is wide) Economic activity: any activity involving the use of resources. So in sum, economic activity involves nature --> waste and satisfaction. Lifetime consumption - how much a human has consumed over the lifetime - (animals, trees, vegetation, metal. Animals do the same, but at a more limited level - they focus more on their needs not wants (they strive for shelter, but not swimming pools)
