lecture for chapters 1 and 2

lecture for chapters 1 and 2 - HowIndividualsMakeChoices:

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1 How Individuals Make Choices: Basic principles behind the individual choices:  1.  Resources  are  scarce 2. The real cost of something is what you must give up  to get it   Opportunity cost It is all about what you have to  forgo  to obtain your  choice.
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2 How Individuals Make Choices: 3. “How much?” is a decision at the margin.  Trade-offs   Marginal decisions  and  marginal analysis 4. People usually take advantage of opportunities  to make themselves better off. Incentives
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Interaction: How Economies Work Principles behind the interaction of individual  choices: 1. There are  gains from trade .  Specialization   Trade and gains from trade 2. Markets move toward  equilibrium . 3. Resources should be used as  efficiently  as  possible to achieve society’s goals.  
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This note was uploaded on 10/12/2011 for the course ECON 2105 taught by Professor Iacopetta during the Fall '08 term at Georgia Institute of Technology.

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lecture for chapters 1 and 2 - HowIndividualsMakeChoices:

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