Textbook Notes - Chapter 1 - Ten Principles of Economics A...

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Chapter 1 - Ten Principles of Economics - A key aspect in society is the managing of the society’s resources (people, land, building, machinery) as resources are scarce - Scarcity – limited nature of society’s resources, therefore being unable fulfill the society’s wants and needs for goods and services - Economics – Study of how society manages its scarce resources - Resources allocated by millions of households and firms - Economists study: o How people make decisions o How much people work o What people buy o How much people save o How people invest their savings o How people interact with each other How the multitude of buyers and sellers of a good together determines the price at which the good is sold and the quantity that is sold o Analyze forces and trends that affect the economy as a whole Growth in average income Fraction of population unable to find work Rate of rising prices Principle #1: People Face Tradeoffs - Making decisions requires trading off one goal against another - More money spent on national defense = less money spent on consumer goods
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This note was uploaded on 05/08/2011 for the course ECON 140 taught by Professor Petersinclair during the Fall '11 term at Wilfred Laurier University .

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Textbook Notes - Chapter 1 - Ten Principles of Economics A...

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