CHAPTER 1 RESOURCE UTILIZATION AND ECONOMICS June 22, 2017

1. Economics defined
2. Origin of the word economics
3. Scarcity: the central problem of economics
4. Factors of production
5. The circular flow model
6. Opportunity cost and trade off
7. Basic decision problems: production, distribution, consumption, & growth over time
8. Four basic economic questions: what, how, how much and for whom to produce
9. 3 Es of economics: efficiency, effectiveness, and equity
10. Positive vs. Normative economics
11. Ceteris paribus principle
12. Microeconomics vs. Macroeconomics
13. Types of economic systems: traditional, command, market, socialism, and mixed
14. Wealth, consumption, production, exchange, distribution
15. Brief history: Classical (Adam Smith, Father of Economics, the invisible hand), Neoclassical (Leon Walras,
equilibrium and marginalism & Alfred Marshall, market efficiencies), Keynesian (John Maynard Keynes, employment,
interest, and money), Non-Walrasian (John Hicks, IS-LM model), modern (Paul Samuelson, etc, rules and regulations
of different private and public institutions), and new classical (adherence to national expectations, developed
countries are concerned with developing countries)

CHAPTER 1 RESOURCE UTILIZATION AND ECONOMICS June 22, 2017

1. Economics defined
2. Origin of the word economics
3. Scarcity: the central problem of economics
4. Factors of production
5. The circular flow model
6. Opportunity cost and trade off
7. Basic decision problems: production, distribution, consumption, & growth over time
8. Four basic economic questions: what, how, how much and for whom to produce
9. 3 Es of economics: efficiency, effectiveness, and equity
10. Positive vs. Normative economics
11. Ceteris paribus principle
12. Microeconomics vs. Macroeconomics
13. Types of economic systems: traditional, command, market, socialism, and mixed
14. Wealth, consumption, production, exchange, distribution
15. Brief history: Classical (Adam Smith, Father of Economics, the invisible hand), Neoclassical (Leon Walras,
equilibrium and marginalism & Alfred Marshall, market efficiencies), Keynesian (John Maynard Keynes, employment,
interest, and money), Non-Walrasian (John Hicks, IS-LM model), modern (Paul Samuelson, etc, rules and regulations
of different private and public institutions), and new classical (adherence to national expectations, developed
countries are concerned with developing countries)