Economic Thinking

Economic Thinking - Economic Thinking Economics is the...

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Economic Thinking Economics is the study of SCARCITY; unlimited wants (desires) with limited resources. Because of this, CHOICES have to be made. And all CHOICES involve COSTS. ...."giving up something." e.g. ...a playground OR a hospital for the local community. We economists refer to this cost as a "economic or OPPORTUNITY COST. CHOOSE the playground AND the hospital will not be built. ..... vice versa. These are difficult CHOICES. Remember these key concepts about economics and choices : 1. People face trade-offs and people choose for good reasons People choose. People choose the alternative which seems best to them because it involves the best combination of costs and benefits. People's choices have consequences which lie in the future. The important costs and benefits in economic decision-making are those which will appear in the future. Economic reasoning stresses making decisions about the future because it is only the future that we can influence. We cannot influence things that have
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Economic Thinking - Economic Thinking Economics is the...

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