ECON 2000 Chapter : Chapter 1 Outline
10 views5 pages
Document Summary
How scarcity creates opportunity costs: we live in a world of limited (scarce) resources, we must choose one over another. How market and government approaches to economic problems differ. Opportunity costs: every time we use scarce resources in one way, we give up the opportunity to use them in other ways, definition: the most desired goods or services forgone to obtain to something else. Used to talk about different types of competition costs. Get 2 tanks, lose 1 truck (1 tank"s cost is truck) He argued that the government had to own all factors of production in order to avoid inequalities in the economy. What economics is all about: positive analysis, based on facts, normative analysis, what ought to be done, subjective arguments of what is best, opinion, micro vs. macro, macroeconomics = the big picture, microeconomics = individual behavior, theory vs.
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers