study - Economics The social science concerned wit5h how...

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Economics The social science concerned wit5h how individuals, institutions, and society make optimal (best) choices under conditions of scarcity Economic perspective Economic way of thinking Scarcity and choice Limited goods and services Scarcity restricts options and demands choices Opportunity costs/ tradeoffs To obtain more of one thing, society forgoes the opportunity of getting the next best thing, that sacrifice is the opportunity cost of the choice. Marginal analysis Comparisons of marginal benefits and marginal costs, usually for decision making. Scientific method Observing real world behavior and outcomes Based on those observations, formulating a possible explanation of cause and effect (hypothesis) Test this explanation by comparing the outcomes of specific events to the outcome predicted by the hypothesis Accepting, rejecting, and modifying the hypothesis based on these comparisons. Continuing to test the hypothesis against the facts. As favorable results
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study - Economics The social science concerned wit5h how...

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