Textbook Notes (368,430)
Canada (161,877)
Economics (747)
ECON 1B03 (303)
Chapter 2

Chapter Two Economics

4 Pages
67 Views
Unlock Document

Department
Economics
Course
ECON 1B03
Professor
Hannah Holmes
Semester
Fall

Description
Chapter Two: Thinking Like An Economist Economists play two roles:  Scientists: try to explain the world  Policy Advisors: try to improve it In the first, economists employ the scientific method, the dispassionate development an testig of theories about how the world works  Assumptions simplify the complex world, make it easier to understand Model: A highly simplified representation of a more complicated reality.  Economists use models to study economic issues Circular-Flow Diagram: a visual model of the economy, shows how dollars flow through markets among households and firms There are two types of “actors”:  Households  Firms Two markets:  The markets for goods and services  The market for “factors of production” Factors of Production: the resources the economy uses to produce goods and services  Labour  Land  Capital (buildings and machines used in production) Our Second Model: The Production Possibilities Frontier PPF: a graph that shows the combinations of two goods the economy can possibly produce given the available resources and the available technology E.g.:  Two goods: computers and wheat  One resource: labour (measure in hours)  Economy has 50,000 labour hours per month avai
More Less

Related notes for ECON 1B03

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit