BUS400 Chapter Notes - Chapter 1: Scientific Method, Howa, Economic Methodology
Document Summary
Understand and apply the economics way of thinking. Economics helps us to think clearly about many important issues. Unlimited wants in the face of limited means. Individuals and society as a whole must make choices. Economics studies the use of scarce resources to satisfy unlimited wants. A social science that studies an aspect[s] of society. Different social science disciplines study different aspects of society. Resources are inputs used to produce goods and services. Entrepreneurship: the ability and talent to organize resources. Factors of production (resources) are required for production. Most resources are scarce and are of special interest to economics. Classified as land, labour, capital, or entrepreneurial services. Income is derived from the ownership of resources. Factors of production generate incomes for their owners. Owners of resources receive income for the use of resources. Wages and salaries (w): income from labour. Interests and dividends (i) : income from financial capital. Total income = r + w + i + .
