ECO201 Lecture Notes - Lecture 1: Macroeconomics, Planned Economy, Gross Domestic Product
Document Summary
By the end of this section, you will be able to: discuss the importance of studying economic, explain the relationship between production and division of labor, evaluate the significance of scarcity. Economics is the study of how humans make decisions in the face of scarcity. Scarcity means that human wants for goods, services and resources exceed what is available. First, specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage. Third, specialization allows businesses to take advantage of economies of scale, which means that for many goods, as the level of production increases, the average cost of producing each individual unit declines. By the end of this section, you will be able to: describe microeconomics, describe macroeconomics, contrast monetary policy and fiscal policy. We can divide that ground into two parts: microeconomics focus on the actions of individuals agents within the economy, like households, workers, and businesses.
