ECO 203 (Microeconomics)
Week 1 Class Live Pro Notes
Factors of Production
2. Labor - Human Resources
3. Capital - Tools made by man, used to produce goods/services
Because of scarcity, choices must be made
What is going to be produced?
How to produce it?
For whom is it going to be produced?
"There is no such thing as a free lunch"
Discussion Board 1 Posts
"There is no such thing as a free lunch," is an expression used by many economists to demonstrate the economic way of thinking. Thinking economically allows us to understand every scarce resource has value. As our textbook states, "No option is free of cost-there is always a trade off" (page 9). In the examples "buy one, get one free" and "All fans in attendance will receive a free Padres sport bag," it is suggested that if a resource is purchased, you will receive another resource for free.
However, in all reality these products are not free at all, as there is always a trade off. The companies believe that value of increased sales/attendance out ways the cost of the resource they are providing. In turn, the consumer must make rational decisions on whether or not to lose other personal resources to gain the so called "free resource."
Both business and consumer have to determine the opportunity cost and make rational economic decisions to gain resources efficiently.
When it comes to elections, the average American voter knows very minimal about how candidates are going to run a country. The majority of Americans find two or three issues in which they agree with a candidate and "roll with the punches." For example, in 2004 52% of Americans wanted President Bush to be re-elected.