Note for INDV 103 with Professor Dalton at UA
Note for INDV 103 with Professor Dalton at UA
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This 2 page Class Notes was uploaded by an elite notetaker on Friday February 6, 2015. The Class Notes belongs to a course at University of Arizona taught by a professor in Fall. Since its upload, it has received 12 views.
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Date Created: 02/06/15
January 1824 2010 CHAPTER 1 SCARCITYAND ECONOMIC GOALS Problems of Insufficiency Economics the study of how humans deal with the problem of insufficiency Evolution and SelfInterest Dawkins Life at its most fundamental level the genetic level is selfinterested llSelfish gene the sole purpose of a gene is to replicate itself genes are nonconsciously selfish Selfinterest nonconscious or conscious is a requirement for survival Survival The basic concern for biological survival is the insufficiency of the resources that are required to maintain life Humanity has lived most of its existence at the boundary between subsistence and starvation Alternatives must be evaluated in terms of their ability to maintain the status quo and decisions must be biased toward avoiding mistakes that threaten the continued existence of the individual or society Sustainability is the term we use today to describe questions of survival scarcity Language and Ego The ego makes us want to conquer environment not just survive it The human psyche includes three components cognition the ability to learn and reason emotion and consciousness Consciousness is what allows humans to know that they know and gives us an inner eye which we use to examine and evaluate our feelings and behaviors It provides an ability to abstract from reality and to imagine alternatives to the present state of existence Language coordinates human interactions Dennet Language to share experience evolved into conscious thought Darwin species evolve in response to hostile forces of nature Conscious thought becomes the new force Social position influences of access to resources Smith the desire to reach a high social status comes through the acquisition of wealth Scarcity in the Midst of Plenty Economics the study of how humans cope with having limitless imaginations while living their lives in a universe of limited possibilities Human imagination means there will always be scarcity because it can always imagine a better state of the world than currently exists Scarce resources must first be transformed into goods and services that humans think are worth accumulating The primary goals of modern society are to utilize scarce resources stimulate growth and achieve economic progress that provides an equitable distribution of economic outcomes Economic Goals Static Efficiency A primary concern for all societies is to efficiently allocate scarce resources among competing uses Allocative efficiency the production of what is most desired An efficient economy produces those things that we want to consume It may be difficult for society to decide what is most wanted Another concern for all societies has to do with how the scarce resource is transformed in the production process It is best if you can produce output products with minimal or no input resources The production process is efficient if it is not possible to increase output without increasing inputs Static efficiency using scarce resources and employing stateoftheart technology help conserve resources and obtain the most of desired output for any given amount of resources Dynamic Efficiency Dynamic efficiency is when an economy has a more rapid rate of adjustment toward equilibrium or a smaller degree of variability in resource utilization as it adjusts Economies that adjust rapidly to disequilibrium are dynamically efficient and other things being equal are preferred to economies which fluctuate interminable or do not move out of disequilibrium at all Economic Growth Economic growth occurs as workers become more productive the society gains access to additional resources or improved technologies are introduced V0taire concept that the future affects economic decisions The future is one standard by which we judge modern societies G rowth entails considerations of resource exploitations Rapid growth may deplete supplies of critical resources Equity Equity how well output is distributed SUMMARY The economic problem is that there is never enough time physical resources information etc Economics the study of how humans cope with and make decisions about theses scarcities Due to selfinterest desire for social status the imagination and the ego humans experience economic scarcity Economic goals help organize economic activity Allocative efficiency a society is producing the mostdesired output Productive efficiency a society is using the least amount of resources to achieve its allocative goals Dynamic efficiency how well an economy adjusts to disturbances that push it away from equilibrium Economic growth occurs when workers become more productive additional resources are obtained or improved technologies are introduced Sustainable growth all generations share in economic progress Equity the just distribution of output Participative justice everyone has an equal chance to succeed in the economy Distributive justice guarantees similar outcomes for everyone in the economy
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