Lecture 1 - Lecture 1: Scarcity and Choice definition of...

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Lecture 1: Scarcity and Choice definition of economics scarcity opportunity costs marginal costs and marginal benefits Definition of Economics Economists study the economy. In the economy, goods and services are produced, exchanged, and consumed. So, economics is the study of the production, exchange, and consumption of goods and services . The subject matter of economics can be approached from two levels of analysis: macroeconomics and microeconomics. Microeconomics looks at the production, exchange, and consumption of goods and services at the level of an individual producer of the good or the market in which a single good or service is exchanged or an individual consumer of the product. The key word is individual; microeconomics deals with the behavior of the individual entities that make up the economy. Macroeconomics deals with the entire national economy. Rather than being concerned with the production of a single good or service, say, vacuum cleaners, macroeconomics looks at the total production of all goods and services including vacuum cleaners, coffee makers, and frozen pizza. Rather than worrying about why the price of gasoline has risen or fallen over the last several weeks macroeconomics is concerned with the inflation rate, a measure of how the average price of all goods and services has changed. Scarcity
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Lecture 1 - Lecture 1: Scarcity and Choice definition of...

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