ECN 100 Lecture Notes - Lecture 1: Planned Economy, Market Failure, Non-Interventionism
Document Summary
The study of how best to allocate scarce resources among competing uses in the best possible way. The study of the allocation of scarce resources used in the production of goods and services that satisfy unlimited wants and desires. Lack of available resources to satisfy all desired uses of those resources. The most desired goods and services that are foregone in order to obtain something else. The next best alternative that is sacrificed for the chosen alternative. Weigh the benefits you expect to get from a choice against the opportunity cost and then decide whether or not to make the choice. (is it worth it to make that decision?) Resources or inputs used to produce goods and services. These four resources are the basic ingredients of production: land, labor, capital, and. Entrepreneurship (new idea, creating a business, filling a demand, innovative)
