microeconomics - Chapter 1 Macro teaches in a classical way...

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Chapter 1 Macro teaches in a classical way. Finance and economics become a part of our daily life. Economics will affect your life. Unemployment and inflations and government use money to increase the economy. Inflation means price leave (increase & decrease). Definition of Economics- the study of efficient management of limited resources Can you do everything you want in a day? No because of time is limited. Efficient management and time and money to get the most. Time and money are resources for us. Countries have resources. One of the resources and when we produce computers, cars etc we use resources trees, lands, water, oils to build factories etc. Resources: o Land : Physical land, oil, natural gas, water, mines, and minerals, trees. o Labor: man power, human power o Capital : anything that produce. Capital is money (Business version). Money is like tool. Machinery, equipment and vehicles, buildings, screw driver consider as a capital o Entrepreneurship: Spirit that takes risk to initiate a business. Learning and getting better ideas and you learn from others. Efficiency o Productive efficiency : Producing with least cost (resources) o Allocative efficiency : producing the most wanted products. 1
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What to produce i. Three types of economic systems Market Economy Mixed Economy Command Economy 1. Individuals own the resources 2. Prices will guide production through the interaction between
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This note was uploaded on 02/28/2008 for the course BUAD 403 taught by Professor Fields during the Fall '07 term at USC.

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microeconomics - Chapter 1 Macro teaches in a classical way...

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