ECON 1000 Study Guide - Midterm Guide: Marginal Cost, Avoidance Speech, Inferior Good
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ECON 1000 Full Course Notes
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Economics is a social science that studies how individuals, businesses, governments, and entire societies cope with scarcity and make best possible choices/decisions given the resources constraints that they face. George bernard shaw economics is the art of making the most out of life. Define scarcity, choices, trade-offs, opportunity cost and incentives. Scarcity is our inability to satisfy all our wants because wants are unlimited and resources are limited. Thus everyone in the world faces scarcity and society must make choices. Choices that individuals, businesses and the entire society make in order to allocate their limited resources, determine their economic future and their economic well-being. Trade-offs involves giving up one thing to get something else. Opportunity cost is the highest-valued alternative that we must give up to get something. Examples would be spending money for goods and services and foregoing other goods and services and value of time foregone.
