Handout1 - Lecture 1: Overview of Economics Intro to...

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Lecture 1: Overview of Economics Intro to Economics Scarcity: Examples: (“Free cell phones”) Economics: . How People make decisions Principle 1: People Face Tradeoffs Principle 2: The Cost of something is what you give up to get it Principle 3: Rational People Think at the margin Principle 4: People Respond to Incentives How People Interact Principle 5: Trade can make everyone better off Principle 6: Markets are usually a good way to organize economic activity. Principle 7: Governments can sometimes improve market outcomes How the economy as a whole works Principle 8: A country’s standard of living depends on its ability to produce goods and services Principle 9: Prices rise when the government prints too much money Principle 10: Society faces a short-run trade-off between inflation and unemployment
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Econ 1102-025, Lecture 1 Page 2 of 9 Microeconomics and Macroeconomics Economics is generally split into two broad categories: 1. Microeconomics: 2. Macroeconomics: How is Economics “done”?
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Handout1 - Lecture 1: Overview of Economics Intro to...

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