SWEAT TWENTY

my fist class for today is economics start at 8.30 a.m..

my lecturer name is Dr Siti Asiah..

so my first topic is DEFINITION OF ECONOMICS..

basically before we go longer far we must know the definition..

so economics is how individual use scarce resources of economic to satisfy their unlimited wants..

there are three concept of economics..

Scarcity—there exist only a finite amount of resources—human and non-human. Nature does not freely provide as much of everything as people want.

Resources—(or Factors of Production) Are Scarce

Inputs used in the production of goods and services

1. Land—original fertility and mineral deposits, topography, climate, water, and vegetation
2. Labor—contributions of humans who work (thinking and doing)
3. Capital—all manufactured resources including buildings, equipment, machines, and improvements to land

4^th factor? Entrepreneurship—human activity of raising capital, organizing, managing, assembling other factors of production, and making basic business policy decisions.

Choice—social science studying how individuals make choices about the use of resources in order to satisfy needs. Scarcity requires Choice. Economics is the study of how we make those choices.

-use models or theories (simplified representations (abstraction) of the real world used to make predictions or to better understand the world)

-models are based on assumptions—must decide on the usefulness of the model

Opportunity Cost—the highest valued alternative that must be sacrificed to attain something or satisfy a want.

-does not depend on who might use the resource but is the resource’s highest value in any of the alternative uses not chosen