Module 1 outline - Teresa Gamba Outline of Module 1 The Study of Economics-Economics is the study of scarcity and choice Every economic issue involves

Module 1 outline - Teresa Gamba Outline of Module 1 The...

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Teresa Gamba 9/8/15 Outline of Module 1 The Study of Economics -Economics is the study of scarcity and choice Every economic issue involves, at its most basic level, individual choice - decisions by individuals about what to do and what not to do. -The economy is a system that coordinates choices about production with choices about consumption, and distributes goods and services to the people who want them. -The United States has a market economy , in which production and consumption are the result of decentralized decisions by many firms and individuals. There is no central authority telling people what to produce and where to ship it. -Individuals have to make choices (ultimately) because resources are scarce A resource is anything that can be used to produce something else -The economies resources, also known as factors of production , can be classified into four categories: 1. Land - timber, water, minerals, and all other resources that come from nature 2. Labor- the effort of workers 3. Capital-
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  • Fall '15
  • Economics, AP MACRO, Krugman, Study of Economics, Teresa Gamba, -The economies resources, -An opportunity cost, aggregates- economic measures

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