chap 1 - 8/21/2010 1 Chapter 1 Scarcity and Cost Chapter 1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 8/21/2010 1 Chapter 1 Scarcity and Cost Chapter 1 Learning Objectives ` 1. Explain the economic concept of scarcity and recognize how various economic systems deal with scarcity scarcity. ` 2. Understand how an economic cost may differ from standard measures of cost ` 3. Make the distinction between positive and normative analysis and understand the use of economic models in economics 8/21/2010 2 Definition of Economics ` Economics = study of individual behavior and the resulting effects on the allocation of scarce resources Resources ` Natural resources/land ` Labor ` Labor ` Capital = equipment, machinery, buildings Note: Capital here is physical capital Note: Capital here is physical capital, not monetary capital as in finance. 8/21/2010 3 Scarcity of Resources ` Scarcity = quantity demanded exceeds quantity available when price is zero Understanding Scarcity ` Whats not scarce?...
View Full Document

Page1 / 10

chap 1 - 8/21/2010 1 Chapter 1 Scarcity and Cost Chapter 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online