econ205jan15

econ205jan15 - ECON 205 January 15, 2008 What is Economics?...

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January 15, 2008 What is Economics? Economics is Concerned with Optimum Allocation of Limited Resources Among unlimited Wants. What are Economics Resources? Economics Resources or Factors of Production are: - Labor - Land - Capital - Entrepreneur Ways to increase labor - Increase productivity of labor, Output/Labor Input - Improve Education How can we increase land - Trade with other countries - Improve technology (better fertilizers, etc) How can we increase capital - saving money, getting new machines Entrepreneurs - very few of them All of these resources are limited Ch. 1: Introduction Limited or Scarce Resources are Resources that we pay a price for: Factor Prices Are: - Price of Labor: Wages - Price of Land: Rent - Price of Capital: Interest - Price of Entrepreneur: Profit How Do We Allocate Economic Resources? In every economy, the economic system decides what to produce, how to produce, and for whom to produce. Economic Systems:
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This note was uploaded on 02/19/2009 for the course ECON 20091_ECO taught by Professor Mohammadsafarzadeh during the Spring '09 term at USC.

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econ205jan15 - ECON 205 January 15, 2008 What is Economics?...

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