Samenvatting Economie voor politicologen Universiteit Leiden jaar 1 Bachelor Politicologie blok 3.
Lecture 1: The core of the market economy, a spontanous order
Opportunity costs: the value of the good service or time lost to obtain something else
Microeconomics studies individual decision-making units, such as a consumer, a worker, or a business firm.
Macroeconomics studies the economy as a whole or its aggregates
Aggregate: a collection of specific economic units treated as if they were one unit.
Economic problem: the need to make choices because wants exceeds means
Economic problems for individuals
Economic problems for society:
Scarcity of economic resources: land, labor, kapital, entrepreneurial ability (KANO)
Many ways to distribute: goods and private or government services
Production possibilities model
Law of increasing opportunity costs: as production of a good increases, the opportunity cost of producing an additional unit increases.
Budget Line: shows various combinations of two products a consumer can
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