economics notes - Blake Roby 1/9/08 What is Economics?...

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Blake Roby 1/9/08 What is Economics? Economics is the study of the allocation of scarce resources among competing ends i .e. the study of how limited goods and resources are divided among multiple people All Societies require a mechanism for deciding what jobs get done, and who will do them. The USA’s method is the government. The government may not hold a gun to your head and tell you to do something or they will pull the trigger but they have their ways of getting people to do what they want. Market Economy Who a product will potentially be sold to is the literal definition for a market economy. Macroeconomics- study of an entire economy; one economy Microeconomics- study of one industry; the market for competing products Four Supreme facts are always true i.e. the 4 cornerstones of economics 1)(micro) All human behavior can be modeled as a series of binary choices; where the cost of any one choice is the lost benefit from the other. In other words, there is a cost and a benefit resulting from every decision; whether that be for good or for bad. A) People respond to incentives-
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This note was uploaded on 04/18/2008 for the course ECO 2023 taught by Professor O'gorman during the Spring '08 term at South Florida Community College.

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