Econ Chap 1 - 1 CHAPTER The Art and Science of Economic...

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Unformatted text preview: 1 CHAPTER The Art and Science of Economic Analysis The Economic Problem Wants, desires: unlimited Resources: scarce Economic choice Economics Resources Inputs; factors of production Goods and services are scarce because resources are scarce Labor Capital Natural Resources Resources Inputs; factors of production Goods and services are scarce because resources are scarce Labor Capital Natural Resources Entrepreneurial ability Resources Labor human effort Payment: Capital human creations Payment: Resources Natural resources Gifts of nature Payment: Entrepreneurial ability Payment: Goods and Services Good: Service: Scarce good/service Choice Give up some goods and services Goods and Services Bads We want none of them; not even at a zero price Free goods and services There is no such thing as a free lunch Involve a cost to someone Economic Decision Makers Households Consumers Resource owners Firms, Governments, Rest of the World Markets...
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Econ Chap 1 - 1 CHAPTER The Art and Science of Economic...

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