Chapter 1 - Chapter 1 Ten Principles of Economics What is...

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Chapter 1 Ten Principles of Economics What is economics? Study of how people make decisions and choices. We all have limited wants. Weighing the benefit and the cost of doing something. Besides monetary cost, cost can include time, energy, etc. Limited resources, unlimited wants. What should I do? Why should you care? You will have to make decisions at some point. So what is economics about? Economics is the study of how people make choices given scarce resources, but unlimited wants. Scarcity refers to the limited nature of society’s resources. Some problems we can use economics to answer: -how people decide how much to work, save and spend, and what to buy -how firms decide how much to produce, how many people to hire -how society decides how to divide its resources between things like national defense, protecting the environment, helping the poor, etc. If cost of something is more than the benefit, it is a poor economic decision.
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Chapter 1 - Chapter 1 Ten Principles of Economics What is...

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