ecx - Point Under curve: most inefficient point. Point Over...

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Chapter 1 10 Principles of Economics 1. People Face Tradeoffs 2. The cost of something is what you give up to get it. Opportunity Cost 3. Rational people think at the margin 4. People Respond to Incentives 5. Trade can make everybody better off 6. Markets are a good way to organize economic activity. 7. Governments can sometimes improve market outcomes 8. .. 9. .. 10. .. Chapter 2 Production Possibilities Frontier: any point on the graph, showing a different combination.
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Unformatted text preview: Point Under curve: most inefficient point. Point Over curve: unattainable All points on the curve are efficient. MicroEcon: the study of how households and firms make decisions. MacroEcon: The study of economy wide phenomena, including inflations, GDP, unemployment. Positive Statement: Describe the world as it is, a fact. Descriptive Normative Statement: describe the world as it should be. Prescriptive Chapter 3...
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This note was uploaded on 04/05/2011 for the course ACC 211 taught by Professor Seargent during the Spring '09 term at Grand Valley State.

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