ECON 1BB3 Chapter Notes - Chapter 3: Flat Tax, Money Supply, Ecotax

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Today: two-earner household - produce less for themselves and demand more from the market. Attempt to maximize utility: utility: satisfaction received from consumption. Are resource suppliers: labour, capital, natural resources, entrepreneurial abilities, use limited resources to satisfy unlimited wants. Proprietors - people who work for themselves: proprietors income should be considered a form of labour income. Over 2/3 of personal income in canada comes from labour earnings rather than from the ownership of other resources. Some households have few valued resources (ad luck, small children, disabilities, discrimination, poor health: govt. gives some households transfer payments - outright grants (old age security, employment insurance, social assistance, canada pension plan, quebec pension plan) Most personal income goes to consumption: durable goods: goods expected to last 3+ years (car, fridge, nondurable goods: (food, clothing, gas, services: (haircuts, air travel, medical care) Are buyers in output markets and sellers in resource markets.