Chapter 1 Macro
Introduction : What is economics?
Resources-
Human made-capital
Services vs. goods
(Highest paid knowledge jobs)
GDP- measure how big economy is
Inflation-price/goods going up
Disinflation- when goes under 0%
Deflation- prices/goods going down
ECONOMICS- is the science of choice, exploring the choices
made by individuals and organizations
Scarcity- the resources we used to produce goods and
services are limited
Economics- the study of choices when there is scarcity
Factors of production- resources used too produce goods &
service; also known as production inputs or resources.
Natural resources- resources provided by nature and used to
produce goods and services.
Labor- human effort, including both physical & mental effort
people, used to produce goods and services.
Physical capital- the stock of equipment machines,
structures, and infrastructure that is used to produce goods
and services
Human capital- the knowledge and skills acquired by a
worker through education and experience and used to
produce goods and services.
