[ECON 110] - Final Exam Guide - Comprehensive Notes for the exam (37 pages long!)

• School: Queen's University
• Department: Economics
• Course: ECON 110
• Professor: Gerald M Barber

Document Summary

For example, governments have a limit on what they can spend and countries often can"t cheaply produce certain goods. Scarcity gives rise to the economic problem of choice. Where scarcity exists, choices must be made to determine what can be had and what cannot be had. Alfred marshal argues that economics is a study of mankind in the ordinary business of life. Formally, economics is the study of the use of scarce resources to satisfy unlimited human wants. Economics assumes that resources are limited and desire is unlimited. Economics can be divided into two main studies: microeconomics and macroe- conomics. Microeconomics is the study of the behaviour of individual economic agents. Macroeconomics is the study of the behaviour of aggregate economic quantities. A factor of production is a resource used to produce goods and services. Factors of production may be divided into land, labour, and capital. Examples of land include arable land, forests, lakes, crude oil, and minerals.