ECON 1010 Study Guide - Midterm Guide: Resource Depletion, Human Capital, Allocative Efficiency
23 Feb 2012
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Scarcity, inability to satisfy all wants (wants are unlimited but resources are limited) faced with scarcity, we must choose among the given alternatives ( scarcity mandates choices) Incentive, reward (penalty) that encourages (discourages) an action choices, we make depend on the incentives we face. Economics, social science that studies the choices that individuals, businesses, governments, and society make. as they cope with scarcity and incentives that influence and reconcile those choices. microeconomics, study of the choices that individuals and businesses make, the way these choices interact and the influence of gov ts. macroeconomics, study of the performance of the national and global economy. Goods (physical objects) & services (tasks performed for people), objects that people value and produce to satisfy human wants. how, goods and services are produced? by using factors of production. natural resources that are either renewable and non-renewable.
