ECON 1010H Lecture 1: Week 1, Lecture 1
Document Summary
1. 5 factors of production: re(cid:448)ie(cid:449) of so(cid:373)e (cid:271)asi(cid:272) (cid:373)ath"s, scarcity, choice, and opportunity cost, consumption possibility frontier. Economics is the study of individuals in their business of everyday lives. Economics is the study of use of scarce resources to satisfy unlimited human wants. Predicting ice cream sales if the weather is hot, we can expect individuals to purchase ice cream and thus lead to an increase in the sale of ice cream. Micro the study of the small parts of the economy. The study of individuals, markets, firms. (think of this as looking. Macro the study of individuals in the broad aggregate. Both are useful and used in different things. Positive economics is the study of what is. Government should pay attention to inflation and employment. Making a statement that might be the basis of a hypothesis. Normative economics is the study of what should do or what ought to be. Latin for saying that all other things being equal.
