Economics 1021A/B Chapter Notes - Chapter 1: Division Of Property, Profit Motive, Final Good

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Bruce Hammond

Document Summary

Economics social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that in uence and reconcile those choices (includes microeconomics and macroeconomics) Microeconomics study of choices that individuals and businesses make, they way they interact in the market and the in uence of governments. Macroeconomics is the study of the performance of the national economy and global economy. Goods and services objects that people value and produce to satisfy wants. Economic systems of production questions: economic systems have been established to answer the three fundamental questions of production. Factors of production (land, labour, capital and entrepreneurship) Land includes all natural resources used to produce goods and services (renewable and nonrenewable) Labour work time and effort people devote to produce goods and services including both physical and mental efforts. Human capital knowledge and skill that people obtain from education, on-the-job training, and work experiences.