BUSS1040 Lecture 1: BUSS 1040 Complete Lecture + Textbook summary Notes
19 Jul 2018
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Lecture 1: (chapter 1 & 4 from nw. ) Economics is based on the problem of scarcity and hence is the study of choice of scarcity. With scarcity comes key questions: what to produce, how to produce it, who should get what is made. In modern economy these are generally determined via the interaction between buyers and sellers, i. e. the market or via government intervention in the market (regulation due to market failure). Scarcity is the issue that resource are limited and hence all needs and wants of society cannot be met. This means parties have to trade off one thing by choosing another. This is described via the concept of opportunity cost. Implicit costs are opportunities that are forgone that do not involve an explicit cost: total oc = explicit cost + implicit cost, e. g. Jeff can either go uni for a year or work and earn 50k in a year.
