Chapter 1 - Chapter 1 I. The Basics 1. Economies and...

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Chapter 1 I. The Basics 1. Economies and economics Economics - the study of how societies go about provisioning themselves with the material means of existence What material things will a society provision itself with to sustain its existence? How do we produce materials? Manual labor and machinery. Who will receive the materials? Tiered system. Consequences- what happens to the society as a whole when it operates Market - doesn’t have to be a physical place, it is a set of social interactions where goods and services, the material means of existence, is exchanged for money Microeconomics - activities and decisions made by people. Ex of microecon question: What Charles had for breakfast? Macroeconomics - consequences refers to this 2. Economic Reasoning- the way economists look at the world A. Opportunity Cost and Scarcity Always a cost involved in making a decision By deciding to do one thing you are foregoing the opportunity to do something else- opportunity cost
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Chapter 1 - Chapter 1 I. The Basics 1. Economies and...

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