UNC-Chapel Hill ECON 101 - Supply & Demand: The basics (3 pages)

Previewing page 1 of 3 page document View the full content.
View Full Document

Supply & Demand: The basics



Previewing page 1 of actual document.

View the full content.
View Full Document

Unformatted text preview:

Econ 101 1st Edition Lecture 1 Supply Demand The Basics Three Questions What How How much 3 major actors Household o Live under one roof having decisions made for them o Suppliers of most of the reproductive facts labor land and capital o How to spend money what goods and services o How to sell rent the resources that the house posses major suppliers of labor in the economy own the land and the capital that is used to make goods services for the business sector Business Firms atom of behavior o what goods and services o how much is produced o to whom it is sold Central Authorities governmental agencies Market area in which buyers and sellers exchange the goods and services Can exist everywhere and nowhere Amazon o Product market final good service purchase buy user consumer good o Factor Market labor factor of production Economies These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Market Economy Economy that contains many markets Command Economy Markets do not make decisions about what goods are purchased and sold but a central authority makes the decision Free Market Economy market economy in which the bulk of the decisions are made by the actors in the market themselves Capitalist Economy the means of production are owned by the private sector rather than the government section has to do with the ownership of the means of production Circular Flow of Economy household sell factor services buys commodes sells to factor markets firms buy factor services produces sell commodities Capital produced means of production machine that produces something things that are produced in order to produce something else Households provide labor in the labor market selling time not ownership or labor Land also owned by households rent sell to someone else to use Opportunity Cost of any economic decision is the foregone value of the next best alternative that is not chosen



View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Supply & Demand: The basics and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Supply & Demand: The basics and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?