ECO 001 Study Guide - Comprehensive Final Exam Guide - Gross Domestic Product, Graph Of A Function, Interest Rate
20 Nov 2018
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Economics does not always need to involve money. Economics is the study of stuff goods and services. To have a lot of stuff makes you come across as wealthy. The study of how we use our limited resources to satisfy our unlimited wants = economics. No matter how much we have, we still want more. And then we work to make more money to buy more things. Scarcity = resources are limited, but our wants are not. We cannot have more with limited resources: opportunity cost and you. Ex: invaded iraq the choice made to win something out of it could"ve invaded. Iran there"s a limit to what you choose to do (invade) Opportunity cost the pain you feel from the choice you didn"t make. Choose to have a house over a yacht but then you regret it. The opportunity cost depends on any other thing you"d like to do. You can"t go to both at the same time.
