Economics chapter 1

Economics chapter 1 - Economics chapter 1 -management of...

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Economics chapter 1 -management of society’s resources is important b/c resources of scarce -Scarcity - the limited nature of society’s resources -cant produce all goods and services people wish to have -economics - the study of how society manages its scarce resources -economists -study how people make decisions: how much they work what they buy how much they save and how they invest their savings -also how people intereact with one another- examine how buyers and sellers of a good together determine the price and the quantity -analyze forces and trends that affect the economy as a whole including the growth in average income, the fraction of population that cannot find work, and the rate at which prices are rising - ten principles of economics -how people make decisions- 1. people face trade-offs- to get one thing we like we must give up another thing we like -efficiency - society is getting the most it can from scarce resources -equity
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Economics chapter 1 - Economics chapter 1 -management of...

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