ECON 200 Lecture Notes - Lecture 1: Root Mean Square, Invisible Hand, Marginal Cost
Document Summary
Notes economics is the study of choice under conditions of scarcity. Land - physical space on which production occurs, including the natural resources that come with it: rent - payment to resource owner. Labor- hurnam physical i mental effort used in. Physical: numan -- acquired knowledge & skill used to enhance productivity, interest & fincial does not play arole equipment/machines used in production, entreneurship-willingness & ability to combine resources in a productive enterprise. " pro t: house holds- own all the resources and demand goods and. Rms demand households resources to produce goods & services: government demands house holds resources play a special role in economy, rest of the world foreign households / pirms | governments. Rational pursuit of self interest- individuals try to make themselves the "best off" as possible. Invisible hand theory now the rational pursit of self intrest tends to lead to a good result for society as a whae: goal of rm - max pro t.
