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ECON 101 class notes

ECON 101 class notes - Marginal benefit Inputs(land labor...

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ECON 101 -Limited resources, but unlimited want this creates scarcity We are self interested. The price of anything is the subjective value you had to give up. Scarcity- occurs because humans wants to exceed the production possible with our limited time and resources Economics- study of how people allocate their limited resources to try to satisfy their unlimited needs. Opportunity cost: value of the best alternative surrendered when we make a decision To make decisions we lessen the opportunity cost and maximize the benefits and compare these based on different decisions that can be made. Marginal cost
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Unformatted text preview: : Marginal benefit : Inputs (land, labor, capital, entrepreneurship) technology Outputs (service, consumption goods) Absolute price: $ Relative price: price of goods in terms for other goods When you make decisions you are trying to maximize your benefits Economic efficiency: it is achieved when we produce the combination of outputs with the highest attainable total value given our limited resources. Positive economics: What is? Normative economics: What should be? Macroeconomics: employment, economic growth, aggregated Microeconomics: individual decision, firms...
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