Economics 202 - At what price should the goods be sold How...

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Economics 202 Ten Principles of economics 1.Economics is the study of how society manages its scarce resources. Economics=allocation. We have stuff, now who gets what? 2. Society and Scare Resources -The management of society’s resources is important because resources are scarce. -Scarcity…. .means that society has limited resources and therefore cannot produce all the goods and serivces needed 3. A household and an economy face many decisions. Who will work? What goods and how many of them should be produced? What resources should be used in production?
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Unformatted text preview: At what price should the goods be sold? How People Mae Decisions-People face trade-offs. How do you know what something is worth unless you know what you have to give up to get it. -The cost of something is what you give up to get it…. .time-Rational people think in margins. Principle 1. People face Trade-offs.-To get one thing, we usually have to give up another thing. MONEY IS NOT A TRADE-OFF, the other things we could have bought with that money-guns vs. butter-food vs. clothing-leisure time vs. work-efficiency vs. equity...
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Economics 202 - At what price should the goods be sold How...

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