1. Economics Issues and Concepts

<aside> 💡 Economics is the study of the use of scarce resources to satisfy unlimited human needs

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Three type of resources:

• Land: All natural endowments (ex. lakes, lakes, oils, etc.)
• Labour: Mental and physical human resources
• Capital: All manufactured aids to production

(Goods are tangible and services are intangible)

Opportunity Cost

<aside> 💡 Every time a choice is made, opportunity costs are incurred.

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It is a ratio - the value of the next best alternative that is given up per current choice

Production Possibilities Boundary

<aside> 💡 A production possibilities boundary illustrates three concepts: scarcity, choice, and opportunity cost

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Self-organizing

<aside> 💡 A great insight of early economists was than an economy based on free-market transactions is self-organizing

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It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.

Types of Economic Systems