Econ 201 – Lecture Notes 1.13.10

Econ 201 - Econ 201 Lecture Notes 1.13.10 Recognize an economic issue Analyze an economic issue Basic Economic Issue SOCIETY o Consumers(Households

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Econ 201 – Lecture Notes, 1.13.10 - Recognize an economic issue - Analyze an economic issue Basic Economic Issue: - SOCIETY o Consumers (Households) o Business Firms o Government - MANAGES o Choose o Choice Economics is the science of making choices. - SCARCE RESOURCES o Resources: things used to produce goods and services that satisfy our unlimited wants. Human Resources: Labor Natural Resources: Land Manufactured Resources: Capital Ex: A Shovel. Can’t consume directly, but use shovel with manual labor to dig a hole. - TIME o Time is Money. Economics: Study of how society manages its scarce resources Unlimited wants, but scarce resources. English Economists opinion on Choice: You can’t always get what you want. ---Factors in Decision Making, or Making Choices--- 1. People face tradeoffs. a. Pleasure & Pain 2. Opportunity Cost a. Whatever must be given up. Example: Crude Milk Can either be made into 100 gallons of pasteurized milk OR 80 gallons of Ice Cream. Opportunity Cost = Whichever one you DON’T pick.
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This note was uploaded on 10/13/2011 for the course EC 201 taught by Professor Haider during the Spring '10 term at Michigan State University.

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Econ 201 - Econ 201 Lecture Notes 1.13.10 Recognize an economic issue Analyze an economic issue Basic Economic Issue SOCIETY o Consumers(Households

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