100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Unit 3- Scarcity, work, and choice $9.15   Add to cart
Quickly navigate to
Preview
  2.  
  3. University College London (UCL)
  4.  
  5. BSc Economics
  6.  
  7. ECON0002 (ECON0002)

Summary

Summary Unit 3- Scarcity, work, and choice
 103 views  2 purchases
  • Course
  • ECON0002 (ECON0002)
  • Institution
  • University College London (UCL)
  • Book
  • The Economy

Comprehensive summary for Unit 3 in the Core Econ 'The Economy' textbook, used by universities such as UCL, Durham, Oxford, KCL, Warwick and many more. Notes include diagrams accompanied by explanations, definitions and an overall understanding of the unit broken down into each sub-section of the c...

[Show more]

Preview 1 out of 5  pages

Document information

  • No
  • Unit 3
  • January 24, 2020
  • 5
  • 2019/2020
  • Summary

Subjects

  • economics

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Samenvatting The Economy - Economics (ECONOM01)
  • Summary microeconomics weeks 1-8
  • Summary of lecture notes and textbook
All for this textbook (112)

Written for

  • University College London (UCL)
  • BSc Economics
  • ECON0002 (ECON0002)
All documents for this subject (4)

Seller

avatar-seller
amygardner2001

Content preview

Unit 3- Scarcity, work, and choice

Introduction
 Scarcity- must make decisions; limited means to meet objectives; trade-offs,
e.g. wage vs. leisure.
 Figure below shows the relationship between hours worked and average
incomes.




 Higher income countries seem to have lower working hours and more free
time- some may have similar free time but different levels of income.
3.1 Labour and production
 Assume that as number of hours worked increases, the amount of goods
produced also increases.
 Marginal product is the slope of the tangent at a given point.
 When marginal is less than average, it is diminishing as input increases.
 Marginal product is the rate of change.
3.2 Preferences
 Preferences are a description of the cost or benefit we associate with each
possible outcome.
 Utility is a numerical indicator of the value that one places on an outcome,
such that higher valued outcomes will be chosen over lower valued ones
when both are feasible.
 An indifference curve joins
together all of the combinations
that provide equal utility.
 Indifference curves slope
downwards due to trade-offs;
the combination that has more
of one good must have less of
the other good.
 Higher indifference curves
correspond to higher utility
levels.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 amygardner2001. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.15. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

62555 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$9.15  2x  sold
  • (0)
  Add to cart