01_ten principles_SV

01_ten principles_SV - Economics, one of the most...

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Economics, one of the most well-developed social sciences, tries to offer answers to an endless list of questions: Why do airlines charge less for a round-trip ticket if the travelers stays over a Saturday night? Why is pro-baseball players paid so much? Why are jobs easy to find in some years and hard to find in others? Why are living standards so meager in many African countries? And many more…
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The management of society’s resources is important because resources are ______ . Scarcity is ubiquitous due to limitations in money, time, energy, capital, natural resources, and clean environment, etc. According to Mankiw, economics is all about how to ______ scarce resources (The 10 principles that follow tell you this). Society and Scarce Resources:
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The word economy comes from a Greek word for “one who manages a ______.” The economy : outcome of the actions people take in trying to achieve their material goals given scarcities.
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HOW PEOPLE MAKE DECISIONS Decision making is at the heart of economics. The first four principles deal with how people make decisions. 0
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“There is no such thing as a free lunch!” Principle #1: People Face Trade-offs.
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Principle #1: People Face Trade-offs. All decisions involve _____ , some of them more apparent and others more obscure. For an individual, these decisions could be: coming to OSU grocery shopping how much to save For a society, these decisions could be: environment vs. income guns vs. butter Making decisions requires trading off one goal against another.
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Society faces a fundamental tradeoff between efficiency and equity. Efficiency means society gets the ______ benefits from its scarce resources. Equity means the benefits of those resources are distributed ____ among the members of society. To obtain efficiency, society has to allow individuals freedom
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This note was uploaded on 11/28/2010 for the course ECON 200 taught by Professor Newton during the Fall '08 term at Ohio State.

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01_ten principles_SV - Economics, one of the most...

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