http://mywordsofme.livejournal.com/ I will be a scribbler of dreams.... - LiveJournal.com Tue, 28 Aug 2007 17:33:07 GMT LiveJournal / LiveJournal.com mywordsofme 1181454 personal http://l-userpic.livejournal.com/5940184/1181454 http://mywordsofme.livejournal.com/ 100 67 http://mywordsofme.livejournal.com/2246.html Tue, 28 Aug 2007 17:33:07 GMT http://mywordsofme.livejournal.com/2246.html Economics<br />8-28-07<br />Professor Cohick<br /><br />Study Questions<br />1. How do individuals make decistions?<br />2, What are the alternative organizing mechanisms a society can choose?<br />3. How do these alternative organizing mechanisms differ in answring vital economic questions?<br />4. What is the payoff when there is state protection of copyright?<br />5. What does the production possibilities curve show us?<br />6. Why do we want economic growth?<br /><br />Principal Assumption<br />People act rationally<br />- Plan ahead<br />- Think things through<br />- Gather information<br />- Recall past experiences<br /><br />People want to better themselves.<br />- Improve their net worth.<br />- Obtain satisfaction.<br />- Obtain happiness.<br /><br />Needs Vs. Wants<br />Need a car<br />Want a Mercedes Benz<br /><br />Need food<br />Want a 50 dollar steak<br /><br />Satisfying Unfilled Wants and Needs<br /><br />Rational people set priorities.<br />- Satisfy the highest priority first.<br /><br />What satisfies?<br />Goods<br />- things produced<br />Services<br />- actions produced<br /><br />Resources<br />Inputs into a production process.<br />- Land - natural resources(petroleum, wheat, air, water, etc)<br />- Labor - people working<br />- Capital - tools and equipment needed<br />- Entrepreneurship - brilliant idea <br /><br />Figure 1-1. Transformation Process<br /><br />Input&nbsp; --------------- &gt; Process --------------------------- &gt; Outputs<br />&nbsp; ^&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; ^ &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; v<br />Resources &lt; ------ Technology can&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goods and services<br />&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; improve the process&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; that satisfy wants and<br />&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or the capital goods&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; needs<br /><i><br /></i>Production Process<br />Inputs are processed into outputs.<br />- Inputs = resources<br />- Outputs = goods and services<br />- Process = how the transformation is done<br /><i><br /></i>Efficiency<br />Defined:<br />- get the maximum salable output<br />- from the lowest possible cost of input<br />- while minimizing the waste<br /><br />Technology<br />Defined:<br />- the application of knowledge<br />- to improve the process, or<br />- to improve the capital input<br /><br />In 1900 in the United States, half of the workers worked in agriculture. Today, 2% work in agriculture.<br /><br /><i></i> http://mywordsofme.livejournal.com/2246.html public 0