ECON 1050 Chapter Notes - Chapter 1: Factors Of Production, Microeconomics, Macroeconomics
4 Feb 2020
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Incentive: reward that encourages action or a penalty that discourages one. Economics: social science that studies the choices that individuals, businesses, governments and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Microeconomics: study of the choices that individuals, businesses, governments and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Macroeconomics: study of the performance of the national economy and the global economy. Two big economic questions: how do choices end up determining what, how and for whom goods and services are produced, do choices made in the pursuit of self-interest also promote the social interest. Goods and services are the objects that people value and produce to satisfy wants. What we produce varies across countries and changes over time. How we produce is described by the technologies and resources that we use.
