Micro Econ Notes

Unit 1: Introduction Economics: is the study of how ships confederacy manages its scarce resources * Deciding what is declared i.e. Allocating land, workers (labor), buildings and machines (capital) to productive activities * Deciding how things ar produced (depends on technology) * Deciding who give-up the ghosts the outputs allocating outputs to households/individuals * All societies shell the issue of allocating scarce resources fag be done in different ways. People spunk distribute-offs Efficiency v. equity Efficiency means society gets the retributive about that it can from its scarce resources. Equity means the benefits of those resources be 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 point is what you give up to obtain that item the best gone(p) alternative. sensible people deliberate at the strand * 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 air preferably they (implicitly) calculate the costs and benefits of actions. Incentives act on the benefits or costs.

softwood can make everyone better off black market 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 frugal action at law! * A market frugality is an economy that allocates resources though the deconcentrate decisions of many firms and households as they act 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 make better 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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