ECON 200 Chapter Notes - Chapter Chapter 1-2: Opportunity Cost, Invisible Hand, Marginal Cost
24 Aug 2015
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Chapter 1: ten principles of economics: economics as a field of study began in the late 18th century. Its founder is adam smith ( a scottish professor). The foundation were set out in his book the wealth of nations published in 1779. What is micro economics about: how people and other decision makers make choices, how people interact and how decision makers interact, how resources are allocated to various possible uses. Society getting the most output it can from its scarce resources: equality: When prosperity is distributed uniformly among society"s members: there is a tradeoff between these goals: To achieve greater equality , a society can redistribute income from wealthy to poor. But this causes people to work less ( there by reducing the amount of prosperity that can be distributed: when making a decision , it is sensible to compare the costs and benefits of possible choices.
