CAS EC 101 Lecture Notes - Lecture 1: Opportunity Cost, Guacamole, Savings Account

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Saponara

Document Summary

All of these decisions involve giving up one thing to get another: giving up to get guacamole, giving up nba playo s to watch game of thrones, etc. Life is full of decisions like this because we live in a world of scarce resources. If you had an in nite amount of money, the for guacamole would not involve using up one of your scarce resources (money) to get something else. If you had an in nite amount of time, you could eventually watch every tv show and sporting event and never have to worry about missing any of them. Businesses and governments have to make similar decisions: should starbucks pay. Economics is the study of these decisions that people, families, businesses, and soci- eties have to make. Speci cally, economists study the allocation of scarce resources. The world only has a limited amount of food, gold, entertainment, everything!