ECON 110 Chapter Notes - Chapter 1: Investment Goods, Population Ageing, Opportunity Cost

• School: Queen's University
• Department: Economics
• Course: ECON 110
• Professor: Ian Cromb

Document Summary

Productivity growth - measure of how much output is produced. it lies at the heart of the long-term increase. Rising government debt - the aggressive government response to the global financial crisis led to massive new public spending. Globalization - international trade and the ongoing process of globalization are crucial to. Economics is a study of mankind in the ordinary business of life (alfred marshall) It is the study of the use of scarce resources to satisfy unlimited human wants. Labour includes mental and physical human resources, even entrepreneurial and management capacity skills. Goods are tangible while services are intangible the act of making them is production and the act of using them is consumption. It implies that choices must be made, making choices implies the existence of cost. Opportunity cost: the value of the next best alternative that is forgone when one alternative is chosen. Resources are used efficiently: it is the boundary between attainable and unattainable output combinations.