Economics 1021A/B Chapter Notes - Chapter 1: Human Capital, Ebay, Macroeconomics

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Jeannie Gillmore

Document Summary

Economics is the social science that studies the choices that individuals, businesses, governments make as they cope with scarcity and the incentives that influence and reconcile those choices: divided into micro and macro economics. Microeconomics is the study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments. Macroeconomics is the study of the performance of the national economy and the global economy. Goods and services are the objects that people value and produce to satisfy human wants: goods are physical objects, services are intangible tasks performed for people. Goods and services are produced using productive resources that economists call factors of productions: factors of production are grouped into four categories. Land land includes minerals, oil, gas, coal, water, air, forests and fish land and water is renewable, but others are non-renewable. Entrepreneurship the human resource that organizes labour, land, and capital is called entrepreneurship.