Chp1-What is Economics

Chp1-What is Economics - ChapterOne WhatisEconomics?...

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Chapter One What is Economics?
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Economic Resources:
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Key idea:
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Two Main Branches of Economics: Microeconomics Macroeconomics
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Choices, Trade-Offs  Opportunity Cost The best alternative foregone
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Margins and Incentives in economics, choices are made at the margin  and are  influenced by incentives Margin a choice made at the margin involves a decision to engage  in one more unit of an activity rather than an all or nothing  decision example: do i eat another slice of pizza versus do i eat a  pizza at all? Give a scenario of when you have been involved in a choice  at the margin Incentives a motivation to engage in an activity  can be a punishment or a reward Example:
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What to Produce? we produce an array of goods in our economy Goods that are high in demand will be produced. How to Produce?
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Chp1-What is Economics - ChapterOne WhatisEconomics?...

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