ECON 103 Lecture Notes - Lecture 2: Strategic Arms Limitation Talks, Root Beer, Snack
6 Sep 2017
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A theory is a story that sits upon the foundation stones. There are 12 main stones that lay the foundation of economics. The foundation stones are accepted as given, factual. Each of the 12 foundations are not just sensible, they are descriptive of the world around us. If there is not enough of a certain good or service freely available to satisfy every conceivable human desire b. Things that are not scarce (but still essential and useful): The amount of money you are paid per year i. ii. Origin of the word salary was payment in salt. Salt was used as a payment method because it was so scarce! Choices must be made because of the presence of scarcity i. Almost every item is affordable to the common human being. You could buy snack food and root beer. You wish you had more spending power, but you had to make a choice because of the scarcity of your cash b.
