ECON 2000 Chapter Notes - Chapter 1: Marginal Cost, Opportunity Cost, Marginalism
Document Summary
Chapter 1 (the scope and method of economics: economics- the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided, why study economics. To be an informed citizen: a knowledge of economics is essential to being an informed, economics is also essential in understanding a range of everyday gov decisions at the local and federal levels. To understand society: economics has 3 fundamental concepts that: Opportunity cost- the best alternative given up when you make a choice. Marginalism- weighing your options when you are making a choice. Efficient markets- a market in which profit opportunities are eliminated almost instantaneously. *there is no such thing as a free lunch: past and present economic decisions have an enormous influence on the character of life in a society, the most evident impact on economic change was the.
