Economics 1021A/B Chapter Notes - Chapter 1: Global Warming, Human Nature, Marginal Utility
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ECON 1021A/B Full Course Notes
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All economic questions arise because we want more than we can get. Individuals wants are limited by time, incomes earned, and prices that must be paid. Government s wants are limited by taxes they collect. Society s wants are limited by resources including human labour, gift of nature, ingenuity, and equipment. Scarcity: our (rich and poor alike) inability to satisfy all our wants / needs. Incentive: a reward that encourages an action or a penalty that discourages one. 65 years ago, 20% worked on farms, 60% worked in mining, construction and manufacturing, and 20% worked on service. Goods and services are produced are produced using the four factors of production. Land: gift of nature or natural resources that we use to produce goods and services. Includes land, water, air, forests, fish, oil, gas coal. Labour: the time and effort (physical & mental) workers devote to producing goods and services.