Chap 1 - Chapter 1 Book Notes Economy Chapter 1 1 Economics...

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Chapter 1 Book Notes Economy Chapter 1 1. Economics a. How society makes optimal choices under conditions of scarcity 2. Economic Perspective a. Way of seeing the world as scarcity 3. Opportunity cost a. To obtain more of one thing society forgoes opportunity of getting the next best thing 4. Utility a. Satisfaction obtained for g/s certainly 5. Marginal analysis a. Companies one extra thing to a situation (i.e one extra hour of studying) and the effects of this Marginal Benefit= Marginal Cost 6. Scientific method a. Testing and observing consumers and outcomes 7. Economic principle a. Economic law b. Statement about economics behavior that allows prediction of probable effects of certain actions 8. Other-thing-equal assumption a. Assuming only one factor will change under consideration and looking at the effects of said thing 9. Microeconomics a. Individuals, industry 10. Macroeconomics a. As a whole/nations 11. Aggregate a. Collections of specific economics units treated as one (consumers)
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Chapter 1 Book Notes 12. Positive economics
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