ECON101 Chapter Notes - Chapter 1: Microeconomics, Marginal Utility, Marginal Cost

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ECON101 Full Course Notes
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ECON101 Full Course Notes
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Scarcity: our inability to get everything we want. (it is universal. : what we can get is limited by the productive resources available, because we cannot get everything we want, we must make choices. Incentives reconcile choices: it is either a reward for doing an action, or penalty prohibiting one. Can the choices that people make out of self interest promote promote social interest. Entrepreneurs are the individuals who run the business and make business decisions: who consumes the goods depends on individual"s incomes. Scarcity forces us to make choices, and a choice for one thing is a tradeoff, or exchange for not choosing another thing: a rational choice is that in which benefits outweigh costs. School is an example of all or nothing costs, as you are either in or out of school. Most situations aren"t like this, you can decide how much of something to gain, or how much of something to give up.

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