Chap 1 Macro - Chapter 1 Macro Economics: The World Around...

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Chapter 1 Macro Economics: The World Around You Economics - Economics is a social science. Economists study how individuals make decisions about: Working and hiring Buying consumer goods and services Producing goods and services for sale Building factories, equipment, and tools Building and buying houses Setting prices and reacting to them Coordinating activities in the economy Importing goods Economics is form of applied logic (reasoning). - Economists study the reasoning that drives economic decisions and outcomes. - One might think of economics as the study of unintended consequences . - Understanding causes and effects is critical to: - understanding the ultimate consequences of economic events and - effective and responsible policy making. Economics is the study of how scarce resources are allocated among unlimited wants. Human nature and Reality - People have unlimited wants .
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- People have limited resources to acquire the things they want. - As a result, they must make choices . -
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Chap 1 Macro - Chapter 1 Macro Economics: The World Around...

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