Economics_103_Microeconomic_Principles_S09_Tuesday_PM

Economics_103_Microeconomic_Principles_S09_Tuesday_PM -...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 103 Microeconomic Principles 7:20-10:00 PM, Tuesday Evening George Mason University Spring 2009 E.C. Holt, Instructor
Background image of page 1

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

View Full DocumentRight Arrow Icon
George Mason Rich in Economic Excellence GMU has two Nobel Laureates, both in Economics (only VA University with two) Professor James Buchanan in 1986 for his work in Public Choice Professor Vernon Smith in 2002 for his work in Experimental Economics
Background image of page 2
What is Economics? Economics is the social science dealing with the allocation of scarce resources among unlimited wants . Key Words: social science, allocation, scarce resources, and unlimited wants.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Economic is a Social Science As a social science, it means that it deals with people; as in humans – homo sapiens Dealing with “humans” is what makes economics interesting, relevant, and practical, but at the same time complex. Relevant since it deals with real-world situations; or as in the title of Ludwig von Mises’ famous book, HUMAN ACTION . Complex since humans are all different and any given person is not the same every day throughout their life.
Background image of page 4
Allocation of Scarce Resources There is not enough of most things to satisfy all the needs of all the individuals. Goods and services for which there is not enough to meet all such needs are classified as “scarce” goods or “economic goods.” Since there is not enough to go around, individuals must make must make choices.
Background image of page 5

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

View Full DocumentRight Arrow Icon
These Scarce Resources Come in Two Forms Human and Non-Human Human resources are all types of skilled and unskilled labor, including the special categories Non-human resources include land, natural resources (oil, coal, water, etc.), and capital (machines, tools, etc. that are used to produce other goods and services).
Background image of page 6
Resources Also Referred to as Factors of Production Land – including natural resources Labor – unskilled, skilled, professional, clerical, etc. Capital – machines, equipment, technology, including the financial resources necessary to acquire machines, engage in research and development, etc. . Entrepreneur – special category of labor that identifies a previously unrecognized profit opportunity. More than just a manager. A risk taker.
Background image of page 7

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

View Full DocumentRight Arrow Icon
Capital – The stuff used to make other stuff Capital can be defined as “aides to production.” There is no doubt that a person can dig a hole in
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 27

Economics_103_Microeconomic_Principles_S09_Tuesday_PM -...

This preview shows document pages 1 - 9. Sign up to view the full document.

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