ECN 104 Chapter 1: Chapter 1
13 Jun 2011
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Chapter 1: limits, alternatives and choice seat #: 1665. 1. 1 ten key concepts to retain for a lifetime. Scarcity in relation to wants means you face tradeoffs; you have to make choice. To get one thing, we usually have to give up another thing. Efficiency: society gets the most that it can from its scarce resources. Equity: the benefits of those resources are distributed fairly among the members of society: making decisions requires trading off one goal against another, opportunity cost: The influence of incentives: choices you make are influenced by incentives, marginal changes in costs/benefits motivate people to respond: mb vs. mc, discounts & sales. Specialization and trade will improve the well-being of all participant. People gain from their ability to trade with one another www. notesolution. com: competition results in gains from trading. Trade allows people to specialize in what they do best.
