{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


principals-concepts-chap7 - the chapter uses this principle...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 ECO 2013 Core Principles Scarcity Principle - the chapter illustrates how increased income allows to movement of resources to "luxuries" like research and development and a clean environment - a trade- off not as easy in countries with low incomes. Cost-Benefit Principle - the chapter uses this principle to explain how an individual makes the decision to invest in human capital, how a firm will allocate capital, and how the level of research and development are determined. Principle of Comparative Advantage
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: - the chapter uses this principle to explain how countries will determine what to produce and where they will sell their products. Not-All-Costs-Count-Equally- the chapter applies the principle of increasing opportunity costs (the low-hanging-fruit principle) to firm decisions. Equilibrium Principle- this principle is applied to the fall of communism and the provision of public education. Important Concepts ! Compound interest ! Diminishing returns to capital ! Entrepreneur...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online