First Econ. Class Notes

First Econ. Class Notes - Solution = increasing resources...

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Principles of Economics: Introduction From an economic point of view, happiness depends upon material items (more possessions = more happiness) ☼ After a while, wants become needs → the more wants an individual can achieve, the more successful that individual is deemed to be Economics (and behavior) is about wants → However, spiritual / mental happiness derives from charity + good deeds People strive to fulfill unlimited wants with limited resources → undesirable outcomes ☼ Dilemma = scarcity, created by unlimited wants + limited resources Struggle / demand for resources creates conflict between individuals, groups, + nations Scarcity comes with a price + creates crises: Honesty / conscience (i.e. not pocketing $100) Status is sacrificed when crimes are committed (i.e. stealing / mugging)
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Unformatted text preview: Solution = increasing resources (western cultures) or limiting wants (eastern culture) Individuals from Western cultures become innovate in discovering, exploring, and inventing new resources to satisfy wants deplete / occupy the resources of others The dominant individuals or groups in society are inevitably those that strive for increased resources Three Principles of Economics: 1. Individuals have to be self-interested (+ rational / smart) 2. Freedom of choice 3. Maximize self-interests A modus operandi (behavior pattern / habit / mode of functioning) emerges, one in which an individual compares marginal (additional) benefits to marginal costs / consequences: if an additional benefit exceeds the additional cost, the individual will make that choice or decision...
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