Econ 104 - 1

Econ 104 - 1 - What Economics Is All About Scarcity refers...

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What Economics Is All About Scarcity refers to the limited nature of society’s resources. Resources are scarce the quantity available isn’t large enough to satisfy all productive uses
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Society’s Economic Problem Scarce Resource Property Resources Land Capital Human Resources Labor Entrepreneurial Ability takes initiative makes policy decisions innovates bears risk
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Land Labor Capital produce goods and services called “factors of production” or “inputs” Entrepreneurial Ability
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What Economics Is All About Economics is the study of how society manages its scarce resources, including how people decide how much to work, save, and spend, and what to buy. how firms decide how much to produce, how many workers to hire. how society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other needs.
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Microeconomics The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units that is, business firms and households . The Scope of Economics
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This note was uploaded on 11/29/2011 for the course ECON 104 taught by Professor Staff during the Fall '10 term at Penn State.

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Econ 104 - 1 - What Economics Is All About Scarcity refers...

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