ECN211 L1-Intro

ECN211 L1-Intro - ECN 211 Macroeconomic Principles L1...

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1 ECN 211 Macroeconomic Principles L1- Introduction to Economics
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2 What is Economics? People have unlimited wants .......... I want season tickets to Manchester United. I also want a private jet to take me back to the UK. But they only have limited resources. .... Time, Income etc. Hence economics is the study of how people choose to allocate their scarce resources among unlimited wants.
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3 Scarcity Exists because of the unlimited wants but limited resources problem. Scarcity – not enough of a good or service to satisfy everyone who wants it (even at zero price ). These are called economic goods.
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Market Economies Use the Price Mechanism to allocate scarce goods and services Price is the allocating device. By having to pay a price it excludes some people from obtaining that good. Economists argue that in most cases this is the most efficient way to allocate goods and services etc. Other options
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This note was uploaded on 03/16/2009 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.

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ECN211 L1-Intro - ECN 211 Macroeconomic Principles L1...

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