ECON 105 Chapter 1-7: ECON 105 - Principles of Macroeconomics, 4th Canadian Edition - Chapters 1-7
3 Apr 2012
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ECON 105 Full Course Notes
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Economics study of how society manages [scarce] resources (people, land, buildings, machinery) Economists study how people make decisions (how much they work, what they buy, how they save/invest, interactions between buyers/sellers); analyze forces and trends (growth in average income, unemployment rates, rising prices rates) Economy group of people interacting with one another. How people make decisions individual decision making: people face tradeoffs: Efficiency society getting most it can from resources (economic pie) Equity distribution of resources among society members (how the pie is divided) Making decisions requires comparing the costs and benefits of alternative courses: ex: decision whether to go to university/college: Benefit: intellectual enrichment and better job opportunities. Costs: not including room/board because even without school, it is needed; costs = tuition & books, but most of all time. Opportunity cost what must be given up to obtain a certain item: rational people think at the margin:
