ECO202 Lecture Notes - Oeconomus, Better Off, Marginal Utility
29 Nov 2022
Department
Course
Professor
Document Summary
Economics is the study of how society manages its scarce resources. 19th-century economist, alfred marshall defined economics as a study of mankind in the ordinary business of life. Economics is about people, how they make decisions, how they interact with one another, and how their interactions influence the course of society overall. Economics is a study of a wide variety of questions. Economy comes from the greek term oikonomos , which is interpreted as one who manages a household. Although a very peculiar interpretation, a household and an economy are very similar. A household comes across many decisions, such as: Just like an economy, a household has to allocate its scarce resources (time, dessert, car mileage). Society must decide what and who does certain jobs. Managing a society is difficult when important resources are scarce. Scarcity is when society"s limited resources prevent the production of the goods and services people wish to have.
