ECON101- Final Exam Guide - Comprehensive Notes for the exam ( 45 pages long!)
28 Mar 2018
School
Department
Course
Professor
Document Summary
Chapter 1: the nature and method of economics. Economy: any system for producing, consuming and distributing wealth (and income) Market economy: like the us, prices and markets play large roles in determining the goods that will be produced and how they will be produced and the distribution of the goods. Economics: the social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity. Consumers have unlimited wants, but we have limited resources. Scarcity: the situation in which there are not enough resources to produce the goods and services necessary to meet all wants and needs of people in the economy. Choice: brought about by the fact that resources are not unlimited. Resources: factors of production (land, labor, capital, entrepreneurship) Land: natural resources (oil, water, forests, minerals) Labor: physical labor (muscle power); innate ability (what you"re born with) Human capital: your education can make you more productive; you can get more education through investment.
