1 Econ HW Notes - From Book Economics Notes Ch. 1-Ten...

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From Book Economics Notes Ch. 1-Ten Principles of Economics Scarcity: The limited nature of society’s resources Economics: The study of how society manages its scarce resources Efficiency: The property of society getting the most it can from its scarce resources-Size of the pie-Maximum you can get out of your resources Equity: The property of distributing economic prosperity fairly among the members of society-How the pie is divided-The fairness of the distribution of resources Opportunity cost: Whatever must be given up to obtain some item Rational People: People who systematically and purposefully do the best they can to achieve their objectives Marginal changes: Small incremental adjustments to a plan of action Incentive: Something that induces a person to act Market Economy: An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for good and services Property Rights: The ability of an individual to own and exercise control over scarce
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This note was uploaded on 04/08/2008 for the course ECONOMICS 211 taught by Professor Petitfrere during the Fall '08 term at University of Miami.

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1 Econ HW Notes - From Book Economics Notes Ch. 1-Ten...

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