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Introduction of Microeconomics (Ten Principles of Economics (How people…
Introduction of Microeconomics
Ten Principles of Economics
How people make decisions
People face trade-off
Opportunity Cost
Marginal Changes
Incentives
How people interact
Trade can make everyone better off
Market economy
Government Intervention
How the economy as a whole works
A country's standard of living depends on its ability to produce goods and services
Prices rise when the government prints too much money
Society faces a short-run trade-offs between inflation and unemployment
Thinking like an Economist
Think in terms of alternatives
Evaluate the cost of individual and social choices
Examine and understand how certain events and issues are related
Economic Models
The circular Flow Diagram
The circular-flow diagram is a visual model of the economy that shows how dollars flow through market among households and firms
Firms
Product and sell goods and services
Hire and use factors of production
Households
Buy and consume goods and services
Own and sell factors of productuin
The production Possibilities Frontier
The production possibilities frontier is a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
Concepts illustrated by the production possibilities frontier
Efficiency
3.Trade-offs
Opportunity Cost
Economic growth