Chapter 1 notes

Chapter 1 notes - HACE 2100 Chapter 1: An Economic...

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HACE 2100 Chapter 1: An Economic Foundation for Consumer Decisions In this chapter: - what is a consumer? - what scarcity is and why it forces consumers to make decisions. - Consumers: individuals and groups who obtain, use, maintain, and dispose of goods and services to fulfill needs and increase satisfactions . - Goods : tangible objects tha tprovide satisfaction. Ex: laptop - Services: intangible actions that provide satisfaction. Ex: getting shoes shined at the airport - Goods and Services meet Human Needs and Wants - Needs: the barest minimum physical necessities that allow you to survive - Wants: what people would acquire if their resources were unlimited. - Resources: - things used to product other things to satisfy people's needs and wants - provide the means to satisfy the family system's demands - Material resources: non human - Human resources: personal characteristics - A Question: - Are all resources unlimited? No - Which ones are not? time, water, clean air, oil, seats in class - These resources are then known as scarce resources - Scarcity:
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- the condition in which we are unable to provide enough products to satisfy al needs and wants because of limited resources. - often described as THE economic problem - due to unlimited wants and limited resources - leads to conflict - Economics: the study of how scarce resources are allocated among alternate uses. - Microeconomics: the study of economic behavior of individual units and decision makers. - our consumer behaviors affect how - TANSTAFL "There ain't no such thing as a free lunch." Even when something appears free, there are costs. Some examples of costs: - lost time - - Opportunity Cost The value of the next best, but foregone, alternative. Ex: choosing this class over another - some opportunity costs are easily quantified - opportunity cost of buying rubber boots for you versus rain coat for kitty - some opportunity costs are not quantified
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This note was uploaded on 03/30/2008 for the course HACE 2100 taught by Professor Mooreman during the Spring '08 term at UGA.

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Chapter 1 notes - HACE 2100 Chapter 1: An Economic...

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