Econ Notes Ch. 1 - 73-150 Intermediate Economics| Book...

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Unformatted text preview: 73-150 Intermediate Economics| Book NotesCH. 1 INTRODUCTION08/29/11-Microeconomics study of how individuals succeed in a world of scarcityoPrice Theory emphasizes role that price plays in determining market outcomes1.Microeconomics: The Allocation of Scarce Resources-Individuals + firms allocate limited resources to make themselves as well of as possible-Consumers pick mix of goods + services-Firms decide what & how much to produce-Government which good & services to produce, subsidize, tax, or regulate-Trade-offs exist because individuals cant have everything; 3 main onesoWhich goods & services to produce Limited amount of resourcesoHow to produce Use more of one input/use less of another inputoWho gets the goods & services If one person gets more, another person gets lessoPrices link these decisions-Who decides government or interaction of independent decisions made by consumers & firms-Market Where interactions between consumers & firms take place...
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Econ Notes Ch. 1 - 73-150 Intermediate Economics| Book...

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