ECON 2030 Chapter : Econ 2030 1
Document Summary
Economics- the study of how individuals make choices in the face of scarcity; the study of how societies go about provisioning themselves with the material means of existence: material means- goods and services necessary, societies vs. Buyer: money goods & services: cost benefit. Seller: goods & services money: cost benefit. Opportunity cost- is the cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen); what we give up to have something else. Examples of economic reasoning: would it make sense for an individual business to stop doing something that is profitable, charles goes to the house of blues. Along his way, he passes another music venue by his friend beth. Which will he go to: go to the house of blues, benefits: perceived pleasure of concert, cost: ticket & perceived pleasure of seeing beth.
