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LU 1 Introduction to Economics :!!: (Ten Principles of Economics :pencil2…
LU 1
Introduction to Economics
:!!:
Ten Principles of Economics :pencil2:
How People Make decisions
People Face Trade-offs
Efficiency versus Equity
The Cost of Somethings is What You Give Up to Get It
Opportunity Cost
Rational People Think at the Margin
People Respond to Incentives
How People Interact
Trade Can Make Everyone Better Off
Markets are usually a Good Way to Organize Economic Activity
Government Can Sometimes Improve Market Outcomes.
How The Economy As A Whole Works
A Country's Standard of Living Depends on Its Ability to Produce Goods and Services.
Productivity
Prices Rise When the Government Prints Too Much Money
Inflation
Society Faces a Short-run Trade-off between Inflation and Unemployment
:check:Inflation or Unemployment
:check: Trade off
The Word
Economy
comes from a Geek word for "one who manages a household"
Economics
is the study of how society manages its scarce resources
Scarcity
means that society has limited resources and therefore cannot produce all the goods and
Economics Models :pen:
Circular Flow Diagram
Production Possibilities Frontier
Interdependence and the Gains from Trade
Comparative advantage
Absolute Advantage
Opportunity cost and comparative advantage
Comparative advantage and trade
A Parable For The Modern Economy
Specialization and Trade
Production possibilities
The economist as policy adviser
Positive versus Normative Analysis
