ECON 1000 Chapter Notes - Chapter 1: Income Distribution, Capital Good, Mixed Economy

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Andrea Podhorsky

Document Summary

What is economics: the study of how we make decisions about the use of scarce resources. Economic agents: individuals businesses governments: wants are unlimited but there is a limited supply of economic resources, money and time are scarce. Economists assume that people make these decisions rationally. logically weighing the personal benefits and costs of available actions, then select the most attractive option. Economic resources (what is needed to create goods and services): Focuses on how individuals interact with businesses: macroeconomics. Income distribution within an economy: a wide ranged view of the economy that studies the behaviour of economic sectors. Looks at supply & demand on a domestic & global scale. Economic models: models allow economists to simplify economic reality. Ex: using road maps rather than satellite maps. Facts & values: variables are factors that have measurable values that can change.