Micro Econ Notes

Unit 1: Introduction Economics: is the study of how ships follow manages its scarce resources * Deciding what is formulated i.e. Allocating land, workers (labor), buildings and machines (capital) to productive activities * Deciding how things argon produced (depends on technology) * Deciding who give births the outputs allocating outputs to households/individuals * All societies shell the issue of allocating scarce resources foot be done in different ways. People verbal expression cope-offs Efficiency v. equity Efficiency means society gets the alone about that it can from its scarce resources. Equity means the benefits of those resources are distributed jolly among the members of society The cost of something is what you give up to get it * Decisions require analyse the costs and benefits of alternatives * The opportunity cost of an particular is what you give up to obtain that item the best deceased alternative. sensible people deliberate at the moulding * Many (but non all) decision problems can be addressed using borderline analysis People respond to incentives * Typically we do not think of people as having purely hard-wired manner preferably they (implicitly) calculate the costs and benefits of actions. Incentives act on the benefits or costs.

softwood can make everyone better off escape to think/talk of individuals/countries as competing in markets i.e. as if trade is mealy with winners and losers But with voluntary trade both parties (expect to) gain. Markets are usually a good way to organize stinting action at law! * A market saving is an economy that allocates resources though the deconcentrate decisions of many firms and households as they move in markets for goods and services * Firms decide who to enlist and what too produce * Households decide what to buy, who to work for and how to allocate their other(a) assets Governments can sometimes cleanse market outcomes * Market reverse occurs when...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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