ECN 104 Lecture Notes - Consumer Sovereignty, Market System, Productive Efficiency

81 views5 pages

Document Summary

Microeconomics is a methodology; it"s a way of looking at the world. Economics is the science of scarcity and choice. There is an economic problem when people have desires and there is something limited. Microeconomics examines individual units (household, firm or industry) and their decision making process. Macroeconomics examines the whole economy: national output of g and s (gdp) and the subdivisions or aggregates: unemployment, inflation. Positive statements are based upon facts & cause-and-effect relationships. What is needed to produce g and s: property resources: land-natural resources, Capital- manufacturing aids to produce g and s: factory, storages, machines. Human resources: labor- physical and mental talents of individuals used in producing g and s. entrepreneurial ability- takes initiative, makes policy decisions, innovates, and bares risk. The production possibilities model assumptions: full employment and productive efficiency, fixed resources (factors of production), fixed technology, two goods.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions