ECON 103 Chapter Notes - Chapter 1-6: Inferior Good, Opportunity Cost, Money Supply
4 Dec 2012
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Document Summary
Economics is a particular way of thinking about behavior. They are unable to predict the future, they can speculate but they aren"t prophets. All individuals are always motivated by greed. Greed doesn"t mean more is always preferred to less, it just means people are never satisfied greater than the costs. Ex a man who jumps of a bridge is maximizing, the gains from jumping were. For something to be scarce, means people want more of a good than is available if the good were to be free. Scarcity doesn"t equal to rarity: ex anthrax is rare, but because no one wants it, it isn"t scarce. Scarcity is a result of greed, as everyone always wants more always trying to improve themselves and their lives it is inevitable. Since the world is full of scarcity, there isn"t enough nor will there ever be enough to go around. There"s no such thing as a free lunch .
