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Unformatted text preview: rce resources to satisfy their wants
Economics=scarcity Another name for productive resources is factors of production
Landrent of mortgage
Labor wages, salary, tips, com.
Capital Stock interest and dividends 21:15
5 Powers of Economic Thining
1. Resources cost more than you think
Accounting costs $ cost
Opportunity cost the next highestvalued alternative, same as implicit cost
2. All decisions are rational
Rational ones behavior is consistent with what one wants
3. All decisions are made at the margin
Margin the weighing of additional costs and additional benefits of a specific change in the current situation
4. The answer to most questions is found in this simple statement: IT DEPENDS!!
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