ECON 1001 Study Guide - Comprehensive Final Exam Guide - Wheat, Opportunity Cost, Interaction
Document Summary
Introductory remarks: economy-greek for one who manages a household , economy has greek roots, household faces many decisions-must allocate its scarce resources(do not have all the time or money that you want. We do not have enough land, we do not have enough capital, etc : society faces many decisions, management of society"s resources is important because resources are scare. Scarcity: limited nature of society"s resources, such as, land labour capital. Economics: study of how society manages its scarce resources. Economists also study how people make decisions: how much they work, what they buy, how much they save, and how they invest their savings. They also examine how people interact with one another. For example, they study how the multitude of buyers and sellers of a good together determine the price at which the good is sold for and the quantity that is sold.