Geography 2050A/B Chapter Notes -Marginal Utility, Marginal Cost, Human Capital
22 May 2014
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Document Summary
Chapter 1 what is economics: scarcity is our inability to get everything we want. How would a tax on e-commerce affect ebay: macroeconomics is the study of the performance of the national economy and the global economy. Goods are physical objects such as cell phones and automobiles. Services are tasks performed for people such as cellphone service and auto-repair service: goods and services are produced using productive resources that economists call factors of production. Factors of production are grouped into 4 categories: land, labor, capital, entrepreneurship, the gift of nature that we use to produce goods and services are called land. In economics land is what in everyday language we call natural resources. Examples are minerals, oil, gas, coal, water, forests, air, and fish: the work time and work effort that people devote to producing goods and services is called labor. The social interest has two dimensions: efficiency and equity (or fairness).
