ECON 200 - Chapter 2 Econ Notes Chapter 2 Notes: Part 1...

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Chapter 2 Econ Notes Chapter 2 Notes: Part 1 Human Capital—The productive knowledge people have. Skill people receive from on the job training. Entrepreneurship is the process of combining the labor, land and capital together to produce goods and services The entrepreneur is the one who makes the tough and risky decisions about what to produce and how to produce. Entrepreneurs are always looking for new ways to improve production techniques or to create new products. They are driven by the lure of positive thinking Goods are those items that we value or desire. They can be tangible goods that can be held, heard, tasted or smelled or intangibles goods such as fairness for all, friendship, etc Services are the intangible acts for which people are willing to pay such as legal or medieval services The scarce goods that are created from scarcity resources are called economic goods It there are not enough economic goods for all of us, we will have to compete for those scarce goods. We all want more tangible and intangible goods and services. Because we assume that people want more goods, it does not mean that economics also presumes that people are selfish and greedy We all face scarcity, because we cannot have all of the goods and series that we desire. We all face scarcity—Even the richest person has to deal with scarcity There is no evidence that people would not find a valuable use for addition income, no matter how rich they become. Even the wealthy individual who decides to donate all of her money to charity faces the constraints of scarcity She had greater resources, she could do still more for others Scarcity never has and never will be eradicated.
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ECON 200 - Chapter 2 Econ Notes Chapter 2 Notes: Part 1...

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