ECON 1001 Lecture Notes - Lecture 1: Microeconomics
Document Summary
Economics deals with the way society chooses to use its limited resources, which have alternative uses to produce goods and services and distribute them among different groups. The compulsion of making choices before societies is referred to as central problems. The word central in this context refers to common to all societies. The problem of choice exists in all societies. Because resources are scarce every economy faces the problem of choice. It is the problem related to the allocation of resources to alternate uses. The society has to make a choice as to what goods and services are to be produced in what quantities. The problem is described as what to produce. The society has to make a choice as to by what method or technique should be adopted to produce goods and services. In order to do so it involves choice of inputs. The problem is referred to as how to produce.
