ECON 1 Lecture Notes - Lecture 1: Cengage Learning, Invisible Hand, Opportunity Cost
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N. gregory mankiw, 7th edition with mindtap printed. *can do trial if deciding* - 10/12 expires. Only cengage hw assignments are graded, mindtap examples are practice. Where should we spend our time, resources. Define scarcity - the limited nature of society"s resources. Define economics - the study of how society manages its scarce resources. How firms decide how much to produce, workers to hire. How to divide its resources between national defense, consumer goods, protecting the environment. Define incentives - something that induces a person to act, the prospect of a reward or punishment. Rational people - assuming the outcome of their actions is what we"d expect to see on average (nationally) People respond to incentives in predictable ways. Self-interest is an important incentive in economics. When pursuing self-interest, it helps society - it"s not selfish. I. e. education - resolution to crime rates, helping others. When gas prices rise, consumers buy more hybrid cards and fewer gas guzzling suvs.