ECN 104 Study Guide - Final Guide: Economic Surplus, Economic Equilibrium, Marginal Utility

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Facing trade-offs scarcity in relation to wants means you face trade-offs, so you must make choices. Opportunity costs cost of the choice you make is what you give up for it. Choosing a little more/less choices are usually made at the margin; we choose a little more/less of something. Influence of incentives choices you make are influenced by incentives. Specialization and trade specialization and trade will improve the well-being of all participants. Effectiveness of markets markets usually do a good job of coordinating trade among individuals, groups and nations. Role of governments governments can occasionally improve the coordinating function of markets. Economy as a whole and the standard of living. Production and the standard of living standard of living of the average person in a particular country is dependent on its production of goods/services; rise in standard of living requires a rise in output of these goods.

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