ECON 2000 Chapter : Econ Chapter 1
Document Summary
Chapter 1: introduction, economics choices revolves around scare resources, definition: economy: study of how best to allocate scarce resources among competing uses. Study of how people use scarce resources: three core choice for each nation, what- to produce with our limited resources. The ppc lays out the menu of available choices. Its up to each nation to pick out the mix of output that will be produced: how- to produce the goods and services we select. There are plenty of different easy to produce a good and someone has to make the decision about which production method to use. The how decision is not just a question of efficiency but of social value as well: for whom- goods and services are produced- who should get them. Whom answers al lot of the basic questions that deal with where the goods go. All three of these questions will have different answers depending on the country.
