ECON Study Guide Ch 1-4

ECON Study Guide Ch 1-4 - Anne Eke Team: Ball-So-Hard ECON...

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Anne Eke Team: Ball-So-Hard ECON 201 ECON Study Guide Ch. 1-4 Chapter 1: Scarcity : society has limited resources and therefore cannot produce all the goods and services people wish to have. Economics : the study of how society manages its scarce resources. Efficiency (societal): society is getting the maximum benefits from its scarce resources. Equality : those benefits are distributed uniformly among society’s members. Opportunity Cost : what you give up to get an item. Rational People : people systematically and purposefully do the best they can to achieve their objectives, given the available opportunities. Marginal Change : to describe a small incremental adjustment to an existing plan of action. Incentive : something that induces a person to act, such as the prospect of a punishment or a reward. Market Economy : the decisions of a central planner are replaced by the decision of millions of firms and households. Property Rights : enforcements so individuals can own and control scarce resources.
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This note was uploaded on 02/02/2012 for the course ECON 201 taught by Professor Annemarieeike during the Fall '12 term at Kentucky.

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ECON Study Guide Ch 1-4 - Anne Eke Team: Ball-So-Hard ECON...

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