Scarcity: whenever wants exceed what is producedby resources. Almost everything is scarce. If there is/can be a price on it, it’s scarce.Example: If Bill Gates has 2$ and wants to buy a hot dog, he can use that same 2$ for many different thing but he can only use that 2$ once. Bill Gates, like anyone else would want to use these two dollars for many different things; therefore his wants exceed his resources.Scarcity Conditions: “goods”, not “bads”: if you don’t want something like a root canal it’s not scarce. Free choice. Limited, can’t be something that is “unlimited” like air, salt water.Production: process that transforms resources into goods and services (g & s)Resources: •Natural resources: wood that you cut yourself (not bought from Rona for ex)•Labour: skills, physical labour•Capital: money, materials, computers...Economics:1.Economic Agents- Individuals (Households), Firms (companies, institutions...), Governments (tuition, tobacco tax), Countries (economies as a whole)2.Fields of economics:
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two dollars, 2$, scarce. Free choice, Economic Agents- Individuals