ECON101 Chapter Notes - Chapter 1: Human Capital, Opportunity Cost, Natural Experiment
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ECON101 Full Course Notes
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All economic questions arise from scarcity inability to satisfy all our needs is scarcity. Scarcity forces us to choose, choices influenced by incentives: reward that encourages an action, or penalty that discourages. Economics is the social science that studies the choices that everyone and everything makes as they cope with scarcity. Microeconomics: study of choices individuals and businesses make, how the choices interact in markets, and influence of governments (why are people buying more dvds than movie tickets?) Macroeconomics: study of performance of national and global economy. Good and services produced by using productive resources called factors of production four categories are land, labour, capital, and entrepreneurship. Labour is work time and work effect people devote to producing goods and services quality of labour depends on human capital which is knowledge and skill people obtain from education, on-the-job training, and work experience.
