ECN 104 Midterm: ECN104
2 Mar 2017
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Scarcity: the limited nature of society"s resources. Natural resource, land and workers" time are all limited in its availability. Economics: is about how the society manages its limited resources. Firms: what to produce, how much to produce, how many workers to hire, etc. Individuals: what to purchase, how much to save, how many hours to work, etc. To get one thing, we usually must give up something else. Think of the allocations of your time and money etc. If you buy a new iphone today, you must wait before buying a new laptop. If you invest in tfsa, you are giving up other forms of investments, such as resp and. For every hour, you spend studying, you could have worked. Society faces the trade-off between efficiency and equity. Efficiency: getting the most out of resources. Efficiency can be referred to the economic pie, and equity to how the economic pie is divided among society"s members.
