[ECN 001A] - Final Exam Guide - Ultimate 51 pages long Study Guide!
14
ECN 001A Full Course Notes
Verified Note
14 documents
Document Summary
What economics is all about (what people, society, the gov"t all have to face) Economics: the study of how society manages its scarce resources. How people make decisions: people face tradeoffs. People all want efficiency and equality, but we can"t have both 100% of the time so we have to find ways to balance them. Efficiency: when society gets the most from its scarce resources vs. Equality: when prosperity is distributed uniformly among society"s members. Helps explain different patterns of society (ex. Gov"t is giving people 4058 and observing their responses. By redistributing income from wealthy to the poor but this reduces the incentive to work and produce shrinks the size of the economic pie : the cost of something is what you give up to get it. Opportunity cost: whatever must be given up to obtain it; specific tradeoff: what you gave up to do something else. Explicit costs: things that are visible, things that we spend 4058 on.
