ECON102 Lecture Notes - Lecture 1: Market Power, Business Cycle, Marginal Utility
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ECON102 Full Course Notes
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Document Summary
Scarcity: the resources of society are limited therefore the society cannot produce all the goods and services that people wish to have. Economics: the study of how society allocate the scarce resources. Principle #1 people face tradeoffs: making decisions requires trading off one goal against another. 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. Principle #2 the cost of something is what you give up to get it: considering and comparing the costs and benefits of alternative courses of action. Opportunity cost: whatever must be given up to obtain some item. Rational people: people who systematically and purposefully do the best they can to achieve their objectives, given the opportunities they have. Marginal changes: small incremental adjustments to a plan of action.