Chapter 1 What is economics about?
ECONOMICS -
is the study of the choices individuals and
society are forced to make because wants are unlimited ,
while the means
to
satisfy those wants are scarce
economics
The central problem with
Limited recourses
Can never
Unlimited recourses
satisfy all of
society's
Unlimited
Limited and have
unlimited wants ,
never
ending-
alternative uses
with limited and varying in importance
Y resources
&
S
Limited
and
amount of Scarcity Unlimited amounts
goods services
of goods and services
that can be
produced desired
,
at
any
One time .
Choice
Opportunity
cost
1.
Scarcity ,
Choice and
Opportunity Cost
WantS -
are human desires for
goods and services
. Are .
unlimited
Needs -
are
requirements of
things for basic survival .
Are unlimited
.
Demand -
There is demand for service if those have the
good only who it do
a to
a or want purchase necessary means to so
.
Opportunity COSt -
The
opportunity cost of a choice is the value to the decision maker of the best alternative that could have been chosen
chosen but was not chosen
.
Production possibility curve
* Read through p . 36-38
ECONOMICS -
is the study of the choices individuals and
society are forced to make because wants are unlimited ,
while the means
to
satisfy those wants are scarce
economics
The central problem with
Limited recourses
Can never
Unlimited recourses
satisfy all of
society's
Unlimited
Limited and have
unlimited wants ,
never
ending-
alternative uses
with limited and varying in importance
Y resources
&
S
Limited
and
amount of Scarcity Unlimited amounts
goods services
of goods and services
that can be
produced desired
,
at
any
One time .
Choice
Opportunity
cost
1.
Scarcity ,
Choice and
Opportunity Cost
WantS -
are human desires for
goods and services
. Are .
unlimited
Needs -
are
requirements of
things for basic survival .
Are unlimited
.
Demand -
There is demand for service if those have the
good only who it do
a to
a or want purchase necessary means to so
.
Opportunity COSt -
The
opportunity cost of a choice is the value to the decision maker of the best alternative that could have been chosen
chosen but was not chosen
.
Production possibility curve
* Read through p . 36-38
