ECON 1000 Chapter Notes - Chapter 1: Economic Model, Opportunity Cost, Great Moderation
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ECON 1000 Full Course Notes
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Scarcity the inability to get everything we want. Incentive a reward that encourages an action or a penalty that discourages one. Microeconomics the study of choices that individuals and businesses make, the way these choices interact in markets and the influence of governments. How would a tax on e-commerce affect ebay?". Macroeconomics is the study of the performance of the national economy and the global economy. Goods and services are objects that people value and produce to satisfy human wants. In canada today, agriculture accounts for 2% of total production, manufactured goods account for 20%, and services are 78%. In china, agriculture is 10%, manufactured goods is 46% and services account for 44% of total production. Goods and services are produced by using productive resources called factors of production. These factors of production are grouped into four categories: land, labour, capital (human or financial, entrepreneurship. Lands the gifts of nature" that we use to produce goods and services.