ECON 110 Lecture Notes - Lecture 1: Opportunity Cost, Decision-Making, Microeconomics

• School: Queen's University
• Department: Economics
• Course: ECON 110
• Professor: Ian James Cromb

Document Summary

Scarcity, choice, and opportunity cost: society has virtually limitless needs and wants in terms of goods and services. Not important: limited resources with which to satisfy these material needs and wants. Permanent condition of scarcity scarcity(everybody can"t have everything they need or wants) -- choices (choices are inevitable and have to be made) -- opportunity costs (is the next best forgone alternative, alphabet example, a vs b, or a vs all alphabet. ) Choose to buy the latest igadget for . Opportunity cost is the next best use of (example: ski trip, save for some larger purchase, samsung gadgets. etc) ex 2. Opportunity cost is the next best use of 45 minutes (studying for econ, earning some money, working out, etc) with this decision you are weighing the pleasure of watching suits vs all the other decisions. Many, if not most times we make decisions at the margin.