CAS EC 101 : EC 101 Ch1-18 outlines.docx

79 views57 pages
tealzebra3 and 39199 others unlocked
CAS EC 101 Full Course Notes
56
CAS EC 101 Full Course Notes
Verified Note
56 documents

Document Summary

Household- many decisions: allocate scarce resources, ability, effort, desire. Society- many decisions: allocate resources, allocate output. Economics: study of how society manages its scarce resources. Economist"s study: how people make decisions, how people interact with one another, analyze forces and trends that affect the economy as a whole. Ten principles of economics: people face trade-offs, make decisions, trade off one goal against another, student-time, parents-income, society. Clean environment vs. high level of income. 2: rational decision maker, take action only if: marginal benefits > marginal costs, people respond to incentives. Incentive: something that induces a person to act, higher price. Act as if they are guided by an invisible hand . Leads them to desirable market outcomes: corollary: government intervention. Prevents the invisible hand"s ability to coordinate the decisions of the households and firms that make up the economy. 3: government can sometimes improve outcomes, we need government, enforce rules and maintain institution. Avoid disparities in economic wellbeing: property rights.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents