Economics 1021A/B Chapter Notes -Opportunity Cost, Human Capital, Marginal Cost

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Michael Parkin

Document Summary

Although there is no one definition of economics, parkin and bade defines it as a social. Science that studies the choices made by individuals, businesses, governments, and entire societies in order to cope with scarcity and how incentives encourage or reconcile these choices. Microeconomics studies the choices made by individuals and businesses and how these choices interact in a market and influence governments. Macroeconomics studies the performance of global and national economics. What? what goods and services are produced (g/s = any object people value and is produced to satisfy wants) How? what is used to produce: factors of production: Labour: work time and effort put in by humans for the production of goods and services. Quality of labour depends on human capital (skills and knowledge of workforce gained through education, training, or work experience) Capital: tools, equipment, buildings, and other infrastructure used in production. Different from financial capital (money, stocks, bonds) that businesses need.