{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ Midterm Outline

Econ Midterm Outline - Econ 104 ~Spring 2009 ~Midterm...

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

View Full Document Right Arrow Icon
Econ 104 ~ Spring 2009 ~ Midterm Review Topic I What is a social science? Social science: study people’s behavior hard to control study environment, recreate events and be objective; Measure society, the intangible. - Social science deals with society What is the fundamental economic problem? Scarcity What is scarcity? Scarcity – situation of having inadequate resources to obtain all of one’s wants. Unlimited wants but limited resources. Scarcity— is the condition that results from society not having enough resources to produce all the things people would like to have What are the four factors of production? The Four Factors of Production 1. Land – includes land, natural resources, and man-made improvements that might be found in a piece of ground. a. Includes timer, water, iron ore, crude oil, natural gas, coal, fish 2. Labor – includes the mental and physical effort of human beings. Moving boxes is physical labor. Writing a book is mental labor. - Division of Labor – splitting up work into smaller, more specialized tasks. - Specialization – allows workers to become experts in a specific area o Leads to increasing output and improved efficiency 3. Capital – capital resources are man-made creations that are used to make goods or services. a. Physical Capital – example: furnaces used to make steel; display shelf b. Human Capital – example: skills and knowledge in a person’s head. After 30 years in the steel industry, the plant manager’s brain is filled with detailed knowledge about the steel making process. 4. Entrepreneurship – a good business sense. A person has the ability to: a. Come up with new products that people will want b. Organize and run a new business successfully c. Manage employees effectively What are implicit wages, rent, interest and profits? Why are they important? These are all forms of income. (Refer to question above) Each factor is rewarded monetarily - Labor (Wages) - Land (Rent) - Capital (Interest) (not necessarily investments in stocks and bonds) - Entrepreneurship (Profits) What is meant by utility in economics?
Image of page 1

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

View Full Document Right Arrow Icon
Utilities: a nything th at s atisfies hu m a n wants a n d d esires - Utilities – 5 types of utilities i. Ele m e ntary : So m ething that is from n ature. Ex: Tree; provides us with sh ad e. ii. Farmed Utility : Physically m a d e. Ex: Chair or table.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern