ECON 101 Lecture Notes - Lecture 1: Human Resources, Forego, Opportunity Cost
Document Summary
Chapter one - economic activity in context resources and tradeoffs. Other resources: money (capital), social relationships that improve quality of life. Resources are managed through four essential economic activities: resource maintenance, production of goods and services, distribution of goods and services, consumption of goods and services. Example: dinner party: what foods to prepare, who cooks, which recipes are used, who is invited, who likes which foods. Needs: basic requirements for food, shelter and physical security: needs are subjective to the individual. Ef ciency : is based on an implicit acceptance of the current distribution of wealth and income, assumes that nothing has value unless humans are willing to pay for it. Example: material goods do not have intrinsic value like freedom and fairness do. Tradeoffs are caused by scarcity: tradeoffs are inevitable - choices always have to be made, tradeoffs are similar to a price you need to pay circular ow.
