ECON 1P91 Chapter Notes - Chapter 1: Opportunity Cost

• School: Brock University
• Department: Economics
• Course: ECON 1P91
• Professor: Professor Cottrel

Document Summary

The study of the use of scarce or limited resources to satisfy unlimited human wants. A society"s resources are usually divided into land, labour and capital. Resources are known as factors of production. Outputs are goods (tangibles) or services (intangibles). Resources can only produce a fraction of the goods and services desired by people. Most of the time the resources are limited. Everyone wants a piece of the oil in alberta and the gas in saskatchewan because the. Due to the scarcity of the resources, it implies the need for choice. Every choice has an associated cost, the opportunity cost. Opportunity cost is de ned as the bene t given up by not using resources in the best alternative way. It is the cost of losing something not achieved because another choice was made. Refer to diagram in chapter 1 slide 4. A child has only 50 cents to spend.