Summary
s1501 study notes 2023 Summary notes of all study guide Units
- Course
- Institution
s1501 study notes 2023 Summary notes of all study guide Units
[Show more]
Seller
Follow
Lazie10
Reviews received
Content preview
lOMoARcPSD|4339232Ecs1501 study notes
2023
Economics (University of South
Africa)
,lOMoARcPSD|4339232
,llOOMMooAARRccPPSS
DD||43373395273325
)
)
, llOOMMooAARRccPPSSD
D||43373395273325
Study Unit 1: About Economics
Economics in Brief
Economics is the study of how our scarce productive resources are used to satisfy human
wants.
Economics is a discipline studying how people choose to use resources (cash, land,
buildings etc.) to satisfy their daily needs/ wants. It involves the production,
distribution and consumption of goods and services.
Economics is primarily concerned with the choices that are made in seeking to use
scarce resources efficiently.
As long as the marginal benefit (i.e. additional benefit) is greater than or equal to the
marginal cost,
then a consumer’s choice would be rational.
Wants, Needs and Demand
Wants: Human desires for goods and services, unlimited.
Needs: Necessities, essential for survival.
Demand: The amount of a good or service that a consumer wants to purchase at a
given price.
A want is something you would like to have. It is not absolutely necessary or essential
for survival, but it would be a good thing to have. Human wants are unlimited or
insatiable.
A need is something you can't do without.
A demand for goods and services is only a demand, if those who want to purchase
them have the ability to do so.
Real life examples:
A baby needs milk but wants
candy. Humans need food for
survival
You can demand a cellphone, if you have the money to buy it.
Basic Economic Problem
1. Scarcity
2. Choice
3. Opportunity cost
Scarcity is the basic economic problem that arises because people (society) have
unlimited wants, and the resources to satisfy them are limited.
Hence, people have to make choices among these limited resources and decide
which satisfies their needs.
Opportunity cost of a choice is the value of the best alternative that could have been
chosen but was not chosen.
The Concept of Opportunity Cost
, Opportunity cost is the cost expressed in terms of the next best alternative sacrificed.
.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Lazie10. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.84. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50064 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now