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United States (206,054)
Economics (2,421)
ECON 20A (35)
Chapter 1

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Department
Economics
Course
ECON 20A
Professor
Mu- Chun Chen
Semester
Spring

Description
Chapter 1 - Scarcity: limited nature of society's resources * Time - Economics: Study society manages its scarce resource * how people decide what to buy, how much to work, save/spend 10 principles You need to know 1.People face tradeoffs --> efficiency: when society gets most from its scarce resources --> equality: when prosperity is distributed uniformly among society's members --> tradeoff: to achieve greater equality 2. Cost of something is what you give up to get it --> opportunity cost: whatever you must give up to obtain 3. Rational people think at margin --> rational people: systematically & purposefully do best to achieve objective --> marginal changes: incremental adjustments to existing plan 4. People respond to incentive --> incentive: induces person to act 5. Trade can make everyone better off --> people can specialize producing 1 good/service & exchange for others 6. Market
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