Economics full notes (Final)

Economics full notes (Final) - 09:50:00 Economics Course1...

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10/12/2008 09:50:00 Economics Course 1 Scarcity- whenever wants  exceed what is produced  by resources. Produced-  process that transforms resources into goods and services (gas) Resources- natural resources trees, water), labor (human input to production, skills,  physical labor), capital(money, materials, computers) Bill gates wanting to buy a 2 dollar hotdog- is there nay scarcity ? in order to have  scarcity u need to be free to choose, and it has to be something that you want, and it  has to be something that is limited -free choice -“goods”, not “bads”- example a root canal is not scarce, cancer neither. It has to be  something you enjoy, or like. -limited- example: money is always scarce, because no matter how much money u have  there is always an alternative to what you use that money for and you can’t just get a  limited amount of money. Air-only unlimited resource,. Economist define scarcity: if there can be a price, its scarce.! Example children, there  can be a price because people do buy children. Economics - is social science that deal with how are we going to decide on the manners  above. Economics is divided into two fields. 1.economic agents- individuals(households),firms/company’s(in economics uses the  term firm, because company is a profitable organization. Government (tuition, tax on  tobacco) and finally country’s.(economies as a whole) (Individuals, firms, governments, countries)
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2. Fields of economics: Micro- small, decisions made by the individuals, firms and  governments.-supply and demand, taxation, trade, wages, pollution.  Macro- big, decisions taken by the countries. G.D.P , inflation, unemployment, national  income. 3. Positive vs. Normative economics- first part of the project is positive economics hat answers the question” what is”  normative- says what should be done,  “what ought to be” or “what should be done” 4. Economic policy and goals- economic police- example, tuition has to be increased by 10 %, its an action plan in  order to achieve economic goals.(reduce taxes, make health care private,increase  benefits) the goals of economic policies are efficiency, equity and stability. Efficiency- if money is the main resource, being efficient is spending the lease amount  of money. If its time then the fastes you achieve your job done is being most  efficient.minimum input fr maximum output. The least reasources to produce the most  goods. If as a country we are efficient that means Canada will produce the most  possible goods. Equity-faire /fairness – redistribution of income
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This note was uploaded on 06/14/2011 for the course MACROECONO 100 taught by Professor Adell during the Spring '10 term at Dawson College.

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Economics full notes (Final) - 09:50:00 Economics Course1...

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