Section 1 Conceptual Building Blocks

Section 1 Conceptual Building Blocks - Section 1 Conceptual...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Section 1: Conceptual Building Blocks Top 10 List 1. Individual Choice 2. Scarcity 3. Opportunity Cost 4. Tradeoffs 5. Thinking at the “margin” 6. Individual Incentives 7. Specialization 8. Trade 9. Efficiency 10. Markets Individual Choice Econ- the science of choice Economics generally is interested in decision that people make- how do we decide among alternatives Scarcity We must devote economic resources to provide for our material wants and needs but resources are not unlimited In econ, we assume this Opportunity Cost The next best alternative that must be given up (sacrificed or foregone) to produce or consume any good/ service Ex: to either go to class or sleep, use money for college instead of a car, etc. Trade-offs Because most every choice involves an scarcity/opportunity costs, individual sare confronted with trade-offs. Every choice involves a consideration of gains and costs; risk and rewards; benefits and costs Marginal Thinking Marginal is one of the most often used words in economics
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2008 for the course AAEC 1006 taught by Professor Mjellerbrock during the Spring '07 term at Virginia Tech.

Page1 / 2

Section 1 Conceptual Building Blocks - Section 1 Conceptual...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online