ECON 208 Chapter 1: ECON 208 Chapter 1 Textbook Notes.pdf
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ECON 208 Full Course Notes
Verified Note
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Document Summary
Chapter 1: economic issues and concepts. 1. 1 the complexity of the modern economy: economy: a system in which scares resources are allocated among competing uses. Economies tend to be complex systems and scares resources include land, labour and machines (capital). The self- organizing economy (invisible hand) With this the collective outcome is coordinated based on the independent decisions of several different groups. Main characteristics of market economies: self- interest: individuals pursue their own self- interests. Institutions: economic activity is governed and monitored by institutions that tend to be set up by the government. Economics is the study of the use of scares resources to satisfy unlimited human wants. Scarcity and choice: scarcity implies that choices must be made, and making choices implies the existence of costs. Opportunity cost: every time a choice is made, opportunity costs are incurred. Below are two questions that fall within.
