Chapter 1 Reading notes Kailey Lyson - An Economic Way of...

An Economic Way of Thinking: Chapter 1 Reading notes KL
Section 2: KL
E
nigma of production can be a problem
C
ost is a big factor of economics
O
pen economy is an economy that allows an unrestricted amount of goods across its border
N ormative economics is subject and value based
O
f the big productions around there is a science behind supply and demand
M
oney science
I
n positive economics they are factual statements
C
oncept of scarce goods makes demands harder
S
ubstantial Growth of resource
Section 3: KL
Principle Symbol One-sentence summary
Scarcity
Forces
Tradeoffs
Limited resources force
people to make choices and
face tradeoffs when they
chose.
Cost Versus Benefits People choose something
when the benefits outweigh
the cost.
Thinking at the margin Our decisions involve choices
that demand slightly more, of
less of something instead of
homestead change