A Brief Introduction to Macroeconomics
A Brief Introduction to Macroeconomics 2315
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This 4 page Class Notes was uploaded by Noah Villemarette on Tuesday September 6, 2016. The Class Notes belongs to 2315 at Texas State University taught by Sherwood Bishop in Fall 2016. Since its upload, it has received 2 views.
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Date Created: 09/06/16
Tuesday, September 6, y Vocabulary Ideas Brief Introduction to Macroeconomics Economics: The study of choice made amount our many wants, with our limited resources Scarcity: When wants exceed the availability of the resources that re available. • Characteristics of scarcity: All humans face scarcity, no matter if you are rich or poor. Scarcity can never be eliminated What would the world be like if there was no scarcity? • If there was no scarcity, there would be no competition or relevance of time. • There would be no scarcity of knowledge or skills, which would lead to an extinction of specialization and stand out individuals because everyone could know what they wanted when they wanted to know it. The Economic problem: • Scarcity forces us to choose, and choices are costly because we must give up other opportunities that we value. (i.e. Opportunity costs) • Scarcity may seem like a hassle, but it keeps us on our toes, and helps appreciate what we have. • Scarcity: Motivates people to take chances and work harder at their job and in their career. is what gives meaning to our lives. Doesn't exist without people, so by technicality it is a ma made occurrence. 1 Tuesday, September 6, y Doesn't mean that their is not a lot of something 2 Tuesday, September 6, y Goods and Services Economic goods: the scarce goods that are created from scarce resources. • Because these goods are scarce, we have to compete for them. products in a grocery store, stuff on amazon, and oil are all scarce goods and they require competition to acquire them. Resources: any inputs used to create goods and services • Resources are grouped into 4 sections: 1. Labor: the physical and human effort used in the production of goods and services. 2. Land: The natural resources used in the production process of goods and services. • The Natural resources used in the production of goods and service. • Something’s that are on the land you own are actually yours. (deer, oil, trees) 3. Capital: the equipment and structures used to produce goods and services. (office buildings, tools, offices, Machines, etc…) • Capital also includes human capital, the productive knowledge and skill people receive from education, onthejob training, health, and other factors that increase productivity. 4. Entrepreneurship: combining the Labor, land, and capital to create goods and services. Natural Resources: “gifts of Nature” that are given a use. (solar power) • “Natural resources are NOT Naturally resourced.” They may occur in Nature, but it isn't until a human finds a use for it, that it becomes a resource. (Human Ingenuity) Goods: Items that we value or desire 3 Tuesday, September 6, y • Tangible goods: Things that you hold, taste, or smell. • Intangible goods: things you cannot touch, such as fairness, friendship, knowledge, security, and health. Services: Intangible values provided to consumers, such as education. Bads: Things that we don't want, that take up our resources. Landfills, oil in the 1800’s) • Bads can become goods with a different need and through Human ingenuity. 4
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