Textbook Notes (362,796)
Canada (158,054)
Economics (923)
ECN 104 (388)
Chapter 1

Chapter 1

8 Pages
Unlock Document

Ryerson University
ECN 104
Halis Yildiz

Chapter 1: Limits, Alternatives and Choice seat #: 1665 1.1 Ten Key Concepts to Retain for a Lifetime The Individual: Facing Tradeoffs: Scarcity in relation to wants means you face tradeoffs; you have to make choice To get one thing, we usually have to give up another thing Efficiency: society gets the most that it can from its scarce resources Equity: the benefits of those resources are distributed fairly among the members of society Making decisions requires trading off one goal against another Opportunity Cost: The cost of the choice you make is what you give up for it, or the opportunity cost Decisions require comparing costs & benefits of alternatives Choosing a Little MoreLess: Choices are usually made at the margin; we choose a little more or a little less of something Marginal changes are small, incremental adjustments to an existing plan of action Make decisions by comparing costs and benefits at the margin The Influence of Incentives: Choices you make are influenced by incentives Marginal changes in costsbenefits motivate people to respond: MB vs. MC Discounts & sales Interaction Among Individuals: Specialization and Trade: Specialization and trade will improve the well-being of all participant People gain from their ability to trade with one another www.notesolution.com
More Less

Related notes for ECN 104

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.