ECON 105 Lecture 1: Chapter 1
22 Apr 2015
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Reading: chapter 1. 1, 1. 2, & 1. 3 macroeconomics/ragan & lipsey - 14th edition. Chapter 1 fall 2013: about the circular flow of income and expenditure, types of economies, the complexity of the modern economy. Economy is a system in which ___________________ resources are allocated among ___________________ uses. Early economists noticed that the interaction of ___________________ is people creates a. ___________________ of economic order. the economy social order benevolence, Loosely speaking, efficiency refers to organizing ___________________ resources to produce the goods and services that people most value, using the. Main characteristics of market economies: self-interest & incentives: individuals respond to incentives, prices and quantities: are set in (relatively) free markets in which i, institutions: Main four characteristics of market economies produce a spontaneous self-organization: scarcity, choice, and opportunity cost. Economics is the study of the use of ___________________ resources to satisfy ___________________ human wants. A society"s resources are usually divided into as follows: labour, land and natural mineral, capital:
