midterm 1

midterm 1 - Chapter 1 Economics: study of human behavior...

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Chapter 1 Economics: study of human behavior constrained by scarcity. It’s not a field of business. Economics is used to predict how people—business owners and consumers—behave when faced with scarcity Microeconomics: the part of the economy that is concerned with decision making of individual units such as households, a firm, or an industry and with individual markets, specific goods and services, and product and resource prices Macroeconomics: the part of the economy concerned with the economy as a whole; with such major aggregates as the household, business, and government sectors; and with measures of the total economy Utility: the want satisfying power of a good or service; the satisfaction or pleasure a consumer attains from the consumption of a good or service (or from the consumption of a collection of goods and services). [Self satisfaction} Scarcity: the limited quantities of the factors of production {land, labor, capital, and entrepreneurship} that are never sufficient enough to satisfy people’s wants
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This note was uploaded on 03/05/2008 for the course ARLT 100g taught by Professor 02:00-03:20pm during the Fall '07 term at USC.

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midterm 1 - Chapter 1 Economics: study of human behavior...

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