ECON 1050 Chapter 1: Economics-1 (1) (dragged) 1
17 Sep 2016
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Who gets the goods and services depends on the incomes that people earn. Every day, 35. 4 million canadians and 7. 2 billion people in other countries make economic choices that result in what, how, and for whom goods and services are produced. You make choices that are in your self-interest choices that you think are best for you. Choices are the best for society as a whole are said to be in the social interest. Social interest has two dimensions: efficiency, equity. Resource use is efficient if it is not possible to make someone better off without making someone else worse off. Equity is fairness, but economists have a variety of views about what is fair. The idea that the social interest requires fair shares is a deeply held one. Four topics that generate discussion and that illustrates tension between self-interest and social interest are: Globalization means the expansion of international trade, borrowing and lending, and investment.
