[EC 202] - Final Exam Guide - Ultimate 68 pages long Study Guide!
Document Summary
The set of social arrangements that answers three questions. The study of production, distribution, and consumption of goods and services. An institution that brings together buyers and sellers. Economic decisions ae made by buyers and sellers. Government either makes or strongly influences how most economic decisions are made. 1776, wealth of nation- adam smith; philosophy book. Was not used back due to inconvenient and effort. Exists because technology in communication and transportation us fast and inexpensive. What is good on a micro level is not good on a macro level. Not good for a society as a whole. Ch 2 choice in a world of scarcity. Doesn"t show us which choice is best; people have different preferences. Whatever must be given up to get what is desired. Comparing the benefits and cost a little more or a little less. The law of diminishing returns (depends on marginal utility) i.
