ECON 2000 Lecture : Notes
Document Summary
Chapter two: capital- things that are produced and then used in the production of other goods and services, factors of production- the inputs into the process of production. Another term for resources: production- the process that transforms scarce resources into useful goods and services. Chapter three: households- the consuming unit in an economy, output/product market- the market in which goods and services are exchanged. Input/factor market- the market in which the resources used to produce goods and services are exchanged. Land market- the input/factor market in which households supply land or other property in exchange for rent: factors of production- the inputs into the production process. Law of demand- the negative relationship between price and quantity demanded: as price rises, quantity demanded decreases; as price falls, quantity demanded increases. Inelastic demand- demand that responds somewhat, but not a great deal, to changes in price.