Ch1 - Rosario Cano Period 4 Ch1 THE NATURE AND METHOD OF...

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Rosario Cano Period 4 Ch1: THE NATURE AND METHOD OF ECONOMICS -ECONOMIC SYSTEM -Biological needs goods and services -Blunt reality -Economic needs exceed productive capacity complete satisfaction impossible -Economics -Social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic needs - THE ECON.PERSPECTIVE -AKA economic way of thinking -SCARSITY AND CHOICE -scarcity is viewed in economics -human and property resources are limited goods and services must be limited -scarcity limits our options we need to decide what we will have and what we’ll have to forgo. -Nothing is free there’s a cost to someone—ultimately society -i.e. Resources have an alternative use yet such is sacrificed for free lunch - Opportunity costs -To get more of one thing you forgo the opportunity of getting something else -The cost of that which you get is the value of that which is sacrificed to obtain it -RATIONAL BEHAVIOR -individuals look for and pursue opportunities to increase their utility. -e.g. pleasure, happiness, or satisfaction -Allocate time, energy, and money for well being decisions become rational/purposeful not random 1. Same person may make different choices under different circumstances 2. Choices will vary greatly among individuals a. Choices are rational; they differ on preferences and circumstances
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This note was uploaded on 09/03/2009 for the course HIST APUSH taught by Professor Bradshaw during the Spring '09 term at Saddleback.

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Ch1 - Rosario Cano Period 4 Ch1 THE NATURE AND METHOD OF...

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