ECON 1B03 Final: Economics 1B03 Full Notes
5 Mar 2018
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ECON 1B03 Full Course Notes
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*labor, land, and capital are the big 3 resources. *a market is just a space where buyers and sellers come together. Households sells firms fop"s and buy goods and services. *gov"t collects taxes from households and business taxes and they fund wellfare, education, health(cid:272)a(cid:396)e. whe(cid:374) the go(cid:448)"t gi(cid:448)es (cid:373)o(cid:374)e(cid:455) to households that"s a t(cid:396)a(cid:374)sfe(cid:396) pa(cid:455)(cid:373)e(cid:374)t. *households make themselves available in the abstract resource market. The firm goes to this market to hire the resources (labor) that they need. When these people are at the firm, they start producing g+s. *banks take the money that we"re saving and loan it to firms (this helps firms to buy more capital indirectly) Economics = the study of how society allocates scarce resources to satisfy society"s unlimited wants. Scarcity = society has limited resources and therefore cannot produce all the goods and services people want. Microeconomics = focuses on the individual parts of the economy.
