Chapter1 - 8/21/2007 ECONOMICS 101 LECTURE 1&2 /...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
8/21/2007 E CONOMICS 101 L ECTURE HAPTER 1 I) Economics = Scarcity + Insatiability definition: the study of how people, individually and collectively, allocate their limited resources to try to satisfy their unlimited wants Scarcity - occurs because human wants exceed the production possible with our limited time and resources - unlimited wants vs. limited resources - forces us to choose Insatiability - self-interest - ex: story of choosing between saving millions of lives and cutting off finger - rationality - forward-thinking - time consistency Goods - any item or service that adds to human happiness - commodities: tangible goods that can be bought and sold (i) ex: cars, books, VCRS - services: intangible goods (i) ex: haircuts, police protection, car wash - free goods: anything of value that is not scarce (i) ex: air, sunlight Economic Bad
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8/21/2007 - anything that reduces happiness - ex: garbage Value in use - what you get out from using the item Value in exchange - the value you get out of an item from trading it - the motivating factor for firms to produce goods I I) Production using technology to apply energy to materials in ways that make the materials more valuable, or that otherwise
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/19/2008 for the course ECON 101 taught by Professor Balaban during the Fall '07 term at UNC.

Page1 / 6

Chapter1 - 8/21/2007 ECONOMICS 101 LECTURE 1&2 /...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online