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ECON 1010
John Brock

ECON 1010 Lecture Notes Week 1-3 Economics is mainly a study of scarcity and how to manage resources to fulfill an unlimited number of wants efficiently -The main economic problem is scarcity; the number of items available is less than the wants for that item. This means a choice must be made. People Face Trade Offs -People make decisions with everything they do. They must decide not to sleep when they wake up. They must decide whether to work rather than have fun or vice versa. -People make these trade-offs by deciding what they want more. Opportunity Cost -Every time someone makes their decision they give up the next best option. -Explicit Cost -A physical payment of money or item traded for another good or service. i.e. Giving money for a movie ticket or trading one candy bar for another. -Implicit Cost A cost that is not tangible but the things you gave up to get something else. When you go to a movie you give up the time that you could have spent making money. Very commonly this is calculated in as time. -Total Opportunity Cost -The sum of the explicit costs plus the implicit costs. (explicit cost) + (implicit cost) = Tota
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