Econ 8.26.10 UNLV Econ 102 Notes

Econ 8.26.10 UNLV Econ 102 Notes - What kinds of questions...

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What kinds of questions does economics address? What are the principles of how people make decisions? What are the principles of how people interact? What are the principles of how the economy as a whole works? What Economics Is All About Scarcity: the limited nature of society’s resources Economics: the study of how society manages its scarce resources, e.g. -how people decide what to buy, how much to work, save, and spend -how firms decide how much to produce, how many workers to hire -how society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other needs. How People Make Decisions Principle #1: People Face Tradeoffs (efficiency) (equality) vs (equity) All decisions involve tradeoffs Example: Going to a party the night before your midterm leaves less time for studying. Having more money to buy stuff requires working longer hours, which leaves less time for leisure. Having more money to buy stuff requires working longer hours, which leaves less time for leisure. Protecting the environment requires resources that could otherwise be used to produce consumer goods
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Society faces an important tradeoff: efficiency vs. equality
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This note was uploaded on 02/01/2011 for the course ECON 102 taught by Professor Wimmer during the Spring '11 term at University of Nevada, Las Vegas.

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Econ 8.26.10 UNLV Econ 102 Notes - What kinds of questions...

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