Economicis the study of how individuals, business firms, governments, and societies as a whole make choices under conditions of scarcity.
Goals of EconomicsTo promote freedom to choose.To promote economic efficiencyTo promote economic stability To promote economic security
Economic AnalysisThe study of forces that determine the distribution of scarce resources. Economic analysis provides insight into how markets operate, and offers methods for attempting to predict future market behavior in response to events, trends, and cycles. Economic analysis is also used by governments to determine tax rates and evaluate the financial health of the nation or state.
Importance of marginal Benefits and Marginal Cost in the process of Decision-MakingMarginal Benefit- additional benefitMarginal Cost- additional cost (the cost added by producing one extra item of a product.MARGINAL: close to the limit
1.Variations in Benefits and Cost due to Stage of Recognition