ECON 2000 Chapter : Economics Chapter 1 Notes
Document Summary
Economics- study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided: economics is a behavioral, or social, science. It is the study of how people make choices. When peoples choices are added up they become societal choices. Why study economics: to learn a way of thinking, 3 concepts, opportunity cost- the best alternative that we forgo, or give up, when we make a choice or decision. Scarce or limited: marginalism- the process of analyzing the additional or incremental costs or benefits arising from a choice or decision. Ex: college vs work: still have to buy food and housing with work. Benefit is double or more income after college: efficient markets- a market in which profit opportunities are eliminated almost instantaneously, to understand society, industrial revolution- the period in england during the late. Capital- things that are produced and then used in the production of other goods and services.
