ECON 103 Lecture Notes - Pearly Gates

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The fundamental idea in economics has to do with motivation. This is what makes an argument economic . All behavior is interpreted through this principle. It doesn"t matter what your gender, race, religion, or neighborhood is. Can this explain why armies line up like this: You can be made worse off by more of something. However, for convenience, we"ll assume more is preferred to less along with maximization. What troubles people about this principle is the economist insists it is universal. Because we live in a world of scarcity. Scarcity implies there are always winners and losers to any choice. Eg. price increases, sellers happy, consumers not happy. Cannot be legislated away any more than gravity. Means that individuals will compete for things. Competition takes on many forms: markets, violence, sports, war, etc. Something that is scarce is actually valued people want more of it. Some thing that is rare is only limited.

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