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Unformatted text preview: Correlation- two things that are together, just seems to happen. (i.e. everytime I get my car washed it rains) Causation- One thing causes another Fallacy of composition- everyone would be doing this, but not CHAPTER 2 Stuff satisfies our wants and resources make the stuff **Four basic resources: Resource Payment 1. Land- Rent a. anything you can dig, pump or grows out of the ground. i.e. iron, coal, tin, trees, oil, natural gas, water, shrimping in the gulf ect. 2. Labor-Wages a. human effort. Physical, mental labor-using your brain 3. Capital-Interest 4. Entrepreneurship-Profit Opportunity Cost- value of the next best thing that you could have gotten 2.3 Marginal Rule of rational choice Net benefit 2.4 incentives Eco- September 3, 2009 2.5 specialization-a dvant ag es-co mp ar ative a dv ant ag es...
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This note was uploaded on 12/08/2010 for the course ECON 2302 taught by Professor Staff during the Fall '08 term at Blinn College.
- Fall '08