ch1 - What is Economics Definition of Economics All...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1 What is Economics? Definition of Economics All economic questions arise because we want more than we can get. Scarcity is our inability to satisfy all our wants. Faced with scarcity we must make choices. Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Economics divides into Microeconomics and Macroeconomics. Microeconomics is the study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments. Macroeconomics is the study of the performance of the national economy and the global economy. Two Big Economic Questions The two big questions of economics are: o How do choices end up determining what, how, and for whom goods and services get produced? o When do choices made in the pursuit of self-interest also promote the social interest? The objects that people value and produce to satisfy human wants are called goods and services . Study Figure 1.1 on p. 3 of your textbook to determine if Canada is a service
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/30/2009 for the course ECON 1020 taught by Professor Parkin during the Spring '09 term at UWO.

Page1 / 3

ch1 - What is Economics Definition of Economics All...

This preview shows document pages 1 - 2. Sign up to view the full document.

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