ECON 1BB3 Lecture 1: Macroeconomics Notes
10 Jan 2019
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Document Summary
Physical capital (produced by people to produce other goods) Economics- the study of how people use their scarce resources to satisfy their unlimited wants. This can be expressed through words, algebra and diagrams/graphs. Resources- are inputs or factors of production which can be used to produce goods and services. Services- intangible things that are done for someone such as a haircut. Scarce- means not enough to satisfy our needs at a zero price. Decision makers involve households, firms, governments and the rest of the world. Markets is the bringing together of a buyer and a seller. The circular flow model shows how money circulates in our economy. Rational self interest are decisions based on maximizing self-benefits or minimize the expected costs. Marginal (extra) changes- which compares marginal benefit vs marginal cost. Study of individual household firms and how they interact with each other. economy as a whole works such as interest and inflations rates.
