Lecture Notes 2-2-10 - Notes: 2-2-10 Asch T. Hawthorn...

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Notes: 2-2-10 Economics T-Th A. Ordonez Asch T. Hawthorn 809-195-3K1C 2/2/10 The Law of Demand - is the claim that, all other things equal , the quantity demanded of a good falls when the pricing of the good rises. This assumption allows us to isolate or focus attention on selected variables. Factors of Production Land - any resource provided by nature. Labor - human work toward production (mental and physical). Capital - resources used in production that are man-made. Building, factories, machinery, equipment, used in production - direct method, round about method. Circular flow diagram: pg. 25 Markets for goods and services Firms sell Households buy Factors of production Households sell Firms buy The circular flow diagram: The circular flow diagram is a visual model of the economy that shows how dollars flow through markets among households and firms. Firms: Produce and sell goods, hire and use factors of production
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This note was uploaded on 05/10/2010 for the course ECONOMICS 809-195-3K taught by Professor A.ordonez during the Spring '10 term at Gateway Tech.

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Lecture Notes 2-2-10 - Notes: 2-2-10 Asch T. Hawthorn...

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