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Chapter 1

ECON 1000 Chapter Notes - Chapter 1: Human Capital, Technological Change, Marginal Utility


Department
Economics
Course Code
ECON 1000
Professor
All
Chapter
1

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ECON 1000 CH 1
What is Economics
Economics
oSocial science that studies the choices that individuals,
businesses, govts, make as they cope with scarcity and incentives
that in!uence and reconcile these choices
Scarcity – inability to get everything we want
Incentives – reward that encourages an action/
penalty that discourages an action
oEconomics divides into two sections
Microeconomics
Study of choices that individuals and business make,
how their choices interact in markets and in!uence
govt
Macroeconomics
Study of performance of the national economy and
global economy
Two big questions summarize scope of economics
oHow do choices end up determining
What, How, and For
Whom
goods are produced
oDo choices made in the pursuit of
Self-interest
also
promote the
social interest?
What, How, and for Whom?
G/S – objects that people value and produce to satisfy
wants
oGoods- physical objects
oService – tasks performed
What?
oWhat we produce varies across countries and
change over time
How?
oDescribed by technologies and resources that
we use
Factors of Production
Resources used to produce G/S
oLand
Natural resrouces
oLabour
Work and time
Quality of labour
depends on human
capital
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