ECON 101 Study Guide - Final Guide: Ceteris Paribus, Marginal Cost, Marginal Utility
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ECON 101 Full Course Notes
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Choices depend on incentives rewards that encourage actions and penalties that discourage action. Economics is the social science that studies the choices people make to cope with scarcity. Microeconomics studies choices of individuals and businesses. 65 years ago, almost 20% of canadians worked on farms: today that number is below 3% Today, over 75% of canadians provide services. There has been a decline in agriculture, mining, construction, and manufacturing, and an expansion of services. Factors of production are land (gifts of nature), labour (work, time and effort), capital (quality of labour is human capital/ tools, instruments, machines, etc. are just capital), entrepreneurship (the human resource that organizes land, labour and capital) Who gets the goods and services depends on the incomes that people earn. Land earns rent, labour earns wages, capital earns interest, entrepreneurship earns profit. Every day, 6. 7 billion people make economic choices that result in what, how and for whom goods and services get produced.
