16466 Chapter Notes - Chapter 1: Ceteris Paribus, Financial Capital, Scientific Method
Document Summary
Economics for today thinking like an economist chapter 1. The problem of scarcity: the condition in which human wants are forever greater than the available supply of time, goods, services and resources, examples: Individuals: bigger flat screen tv, more restaurant meals, more leisure time. Resources are also called factors of production: economists divide resources into three categories: land, labour and capital. Resources: land: land is any resource provided by nature and includes anything natural above or below the ground(forests, minerals, oil, wildlife, rivers, lakes and oceans. , may be renewable (crops, animals & clean air) or non-renewable(coal, oil, copper, Resources: labour (human capital: labour is the mental and physical human capacity of workers to produce goods and services, both the number of people available for work and the skills or quality of workers measure the labour resource. Economics: the study of scarcity & choice: the perpetual problem of scarcity forces people to make choices.
