ECON 1000 Chapter Notes - Chapter 2: Allocative Efficiency, Absolute Advantage, Marginal Cost

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Steven Edwards

Document Summary

Economics: the social science that studies the choices that individuals, businesses, governments and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. The study of mankind in the ordinary business of life. It arises out of the scarce resources to satisfy human wants. Incentive: a reward that encourages an action or a penalty that discourages one. Microeconomics: the study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments: microeconomics deals with concepts on an individual level. Consumer: decide what quantity and what brand of various goods to purchase. How many hours to participate and how many not to participate in. Producer (business owner): how many to hire from the labour pool. How to integrate the labour from the available. Something that is necessary for you to continue.