[ECON 105] - Final Exam Guide - Ultimate 58 pages long Study Guide!

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Seong- Jun Choi

Document Summary

We live in a world of scarcity: existing supplies of resources are inadequate. Economics is the study of the use of scarce resources to satisfy unlimited human wants. Resources = factors of production: produce things that people desire. Things produced are: goods tangible; ex. Cars, shoes etc: services intangible; ex. Production: act of making goods & services. Societies face the problem of deciding what to produce and how much to produce. Scarcity implies the need for choice -> choice implies the existence of cost. Every time a choice is made, opportunity costs are incurred. Negatively sloped curve divides the combinations that can be attained from those that cannot. Points above, and to the right unattainable. Points below, and to the left attainable. Points on the curve attainable: resources used efficiently, not using all resources. Negative slope because when all resources are used efficiently, producing one more of one good, requires producing less of others.