ECON 102 Lecture Notes - Lecture 1: Mark Zuckerberg, Market Economy, Opportunity Cost
18 May 2017
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Document Summary
Chapter 1: the principles of economics: economy - comes from the greek word, one who manages a household . There is no such thing as a free lunch. Efficiency: the property of society getting the most it can from its scarce resources. Equity: the property of distributing economic prosperity fairly among the members of society. Is what you give up to get it. Opportunity cost: whatever must be given up to obtain some item. Principle #3: rational people think at the margin. Rational people: people who systematically and purposefully do the best they can to achieve their objectives. Marginal changes: small incremental adjustments to a plan of action. Incentive: something that induces a person to act. Principle #5: trade can make everyone better off. Property rights: the ability of an individual to own and exercise control over scarce resources. Principle #6: markets are usually a good way to organize.
