Micro Book Chap 1.docx

2 Pages
Unlock Document

ECON 1010
John Brock

ECON 1010 Book Notes Chap 1 Economics- All about scarcity. -Limited resources vs. unlimited wants -How society manages resources Ten Principles of Economics Principle 1: People Face Trade Offs -People must choose what to give up in order to attain something else. -Efficiency -Society is getting max benefits from its scarce resources. -Equality -Those benefits are distributed evenly among the society’s members. *Efficiency is the size or quantity of goods where equality is how goods are divided. Principle 2: The Cost of Something is What You Give Up to Get It -Opportunity Cost is what must be given to attain an item. Time, money, goods, etc. Principle 3: Rational People Think at the Margin -Rational People -People who systematically and purposefully do the best they can to achieve their objectives. -Marginal Changes -Small incremental adjustments to existing plans of action. -Marginal benefit is the value associated with the availability and use of an item. Depends on how many units a person has. * Marginal Benfit is how much something is worth to an individual and, commonly, at a point will decrease with the increasing number of items. Principle 4: People Respond to Incentives -An Incentive is something that induces a person to act. -People respond to incentives in good and bad ways. EX. Increased safety  decreased caution Principle 5: Trade Can Make Everyone Better Off -Everyone is in competition wit
More Less

Related notes for ECON 1010

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.