ECON 211 Lecture Notes - Lecture 1: Physical Capital, Human Capital
Document Summary
Economics is the study of how individuals and societies allocate scare resources among many competing uses. Microeconomics: deals with individual households and specific markets. Macroeconomics: examines the entire economy of a state, country or world. Resources: anything used to produce a good or service. Natural resources used to produce a good or service. All physical & mental activity used in production (mental-human capital most countries have a high premium on education. ) Government plays crucial part in providing infrastructure. The talent or ability to combine land, labor & capital to produce goods and services. A model that concisely describes how goods, services, resources, and money flow back and forth in an economy. Types of economic agents: households-demand goods, supply resources. One person"s spending is another person"s income. The value of all resources is equal to the total value of production. Not enough to satisfy unlimited wants of society. By comparing the benefits of an action with the costs.
