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Unformatted text preview: Economics 202 Yali Wangs office hours: Mon-Wed 10-11 am Thur 10-12 206 Old Botany 1. Factors of Production: Land Labor Capital Entrepreneurship 2. Opportunity Costs 3. Production Possibility Curve Chapter Three-Supply and Demand Consumers maximize their utility (satisfaction) given limited resources Businesses try to maximize profits by using resources efficiently in producing goods Government maximized general welfare of society Specialization and Exchange a. We buy and sell goods and services because we are not capable of producing all the things we need or want. b. Our time, energy, and resources are limited, so we produce on one product that we trade Circular Flow a. Show four different groups that participate in our economy. Two Markets a. Factor markets are any place where factors of production are bought and sold b. Product markets are any place where finished goods are sold Supply and Demand a. Supply is the seller b. Demand is the buyer Supply-is the ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus ....
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