ECON 219 Chapter Notes - Chapter 1: Mixed Economy, European Cooperation In Science And Technology, The Communist Manifesto
18 Apr 2013
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ECON 219 Full Course Notes
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Self-organizing : chain of events work together/interact without. -> the complexity of the modern economy official control. -> efficiency : resources being produced quickly in it"s demand at low cost. Prices + quantities set in relatively free market, individuals trade voluntarily. Institutions -> created by state protect property, enforce contracts. Scarcity : not enough resources to fit demand. Resources : land, labor, capital (physical methods of productivity, metal/tools/etc. ) Choice: deciding which resource is most in need. Opportunity cost : the price of the choice (using next best option) -> prices in a market economy reflect scarcity. -> should canadians/governments worry about idle resources? can anything. -> an economy oprating inside production possibilities is either neglecting to. -> two ways to get growth (assuming resources are being used efficiently) : Division of labour : specialization within a job. Comparative advantage : taking advantage of individual abilities: is productive capacity growing? either more resources are obtained or technology is improved.
