ec3 - Eco 101 Chapter 1 notes Definition of economics the...

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Unformatted text preview: Eco 101: Chapter 1 notes Definition of economics the study of how individuals and societies use limited resources to satisfy unlimited wants. Fundamental economic problem scarcity. individuals and societies must choose among available alternatives. Economic goods, free goods, and economic bads economic good (scarce good) - the quantity demanded exceeds the quantity supplied at a zero price. free good - the quantity supplied exceeds the quantity demanded at a zero price. economic bad - people are willing to pay to avoid the item Economic resources land natural resources, the “free gifts of nature” labor the contribution of human beings capital plant and equipment this differs from “financial capital” entrepreneurial ability Resource payments Economic Resource Resource payment land rent labor wages capital interest entrepreneurial ability profit Rational self-interest...
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This note was uploaded on 02/07/2011 for the course ECO 2023 taught by Professor Rush during the Spring '08 term at University of Florida.

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ec3 - Eco 101 Chapter 1 notes Definition of economics the...

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