ECON 1050 Chapter Notes - Chapter 1: Espresso, Marginal Utility, China Airlines
20 Dec 2016
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Document Summary
What we want and what we can have is limited by many different factors. Limited by productive resources available, i. e. gifts of nature. When making a decision you have lose something to gain something (opportunity cost) Incentive: a reward that encourages an action or a penalty that discourages one. An incentive is prices, if the cost of a good is too high we offend wait for a sale to buy the product. Economics: the social science that studies the choices that individuals, businesses, government, and entire societies make as they come with scarcity and the incentives that influence and reconcile those choices. Microeconomics: the study of the choices that individuals and businesses make, the way these choices interact in markets, and influence of governments. Macroeconomics: the study of the performance of the national economy and the global economy. Goods and services are objects that people value and produce to satisfy wants.
