ECON 103 Lecture Notes - Lecture 2: Root Beer, Rationality
28 Jul 2016
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They are motivated to keep working by paychecks. In order for there to be a resourceful society, we need produced items to be well-made and helpful (houses that won"t collapse, clothes that won"t rip, etc. ) We need a system to figure out how the billions of available resources can be used productively. Earth is constantly rotating and moving around the sun. We live in a world of inescapable scarcity. Scarce doesn"t mean it"s hard to get, it means there"s not enough of that thing to go around to satisfy every human desire for it at zero cost. Not scarce: breathable air, gravity, atmospheric pressure. Because things are scarce, we must make choices, which means we had costs. If something is scarce, that means a choice needs to be made with respect to it: ex: you"re at the supermarket and have and there"s 50,000 items.
