ECO-2013 Chapter Notes - Chapter 1: Marginal Cost, Guideposts, Marginal Utility
Document Summary
The importance of adam smith, the father of economic science: foundation: originated in 1776 w/ smith"s publication of an inquiry into the. What is economics about: choices of individuals corporations, scarcity means having to make choices. Scarcity- fundamental concept of economics that indicates that there is less of a good freely available from nature. Refrain from using scarcity to describe availability or abundance. Unlimited desires + limited goods = choices. Choice- the act of selecting among alternatives. Resources- ingredients, or inputs, people use to produce goods and services (e. g. technology or skill, talents of humans, knowledge) Capital- human-made resources; physical resources (e. g. machines, tools) Natural resources include: the ocean, land, mineral deposits. People will always face scarcity choices economics: scarcity and poverty are not the same. Scarcity is an objective concept that describes a factual situation in which the nature of our resources keeps us from being able to completely fulfill our desire for goods and services.
