econ 200 - chap 1

econ 200 - chap 1 - ChapterSummary

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Chapter 1 - First Principles: Summary   1. All economic analysis is based on a short list of basic principles. These principles apply to two levels of economic  understanding. First, we must understand how individuals make choices; second, we must understand how these  choices interact.  2. Everyone has to make choices about what to do and what  not  to do.  Individual choice  is the basis of economics—if  it doesn't involve choice, it isn't economics.  3. The reason choices must be made is that  resources — anything that can be used to produce something else—are  scarce . Individuals are limited in their choices by money and time; economies are limited by their supplies of human  and natural resources.  4. Because you must choose among limited alternatives, the true cost of anything is what you must give up to get it— all costs are  opportunity costs
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This note was uploaded on 01/01/2011 for the course ECON 200 taught by Professor - during the Summer '07 term at Shoreline.

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econ 200 - chap 1 - ChapterSummary

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