ECON 2030 : Econ Exam 1 Notes
Document Summary
Economics: economics, the study of how human beings coordinate their wants and desires, given the decision- making mechanisms, social customs and political realities of the society, 1. What, and how much, to produce: 2. Opportunity costs: the best alternative you have forgone; the best one you didn"t choose; the benefit you might have gained from choosing the next-best alternative. You receive benefits > your benefits cost what you get what you give up. Rationality: when given a choice, you will choose something if the benefits is at least as great as the cost. Is it ever rational from an economic standpoint, to stop doing something profitable: just because it"s profitable, it doesn"t mean it"s the best thing to do. Efficiency: gaining the most output, out of the given input; achieving a goal as cheaply as possible. Optimality is in the eye of the users, it depends on the consumer clothes food.
