Stuff

MACROECONOMICS
INDIVIDUAL CHOICE
1) Resources are scarce: there isnt full to satisfy only productive uses
2) The real cost of something: is what you outpouring up to grasp it (opportunity cost)
3) How Much? : Decision made at the margin you make a trade-off, when you compare the costs and benefits of doing something
4) stack usually take advantage of opportunity to make themselves better-off.



(Self-interested) not SELFISH

INTERACTION
1) There are gains from trade: plenty can get more of what they want through trade than they could if they tried to be self-sufficient
2) Markets move towards equaliser: an economic situation is in equilibrium when no individual would be better off doing something different
3) Resources should be used as efficiently as possible to secure societys goal: an economy is efficient if it takes all opportunities to make someone better without making others worse off
4) Markets usually lead to efficiency: when markets dont achieve efficiency, organization intervention can improve societys welfare

CHAPTER 2
The achievement possibilities frontier:
* Illustrates the trade-offs facing an economy that fathers 2 goods
* Shows the maximum arrive of each good that can be produced given the cadence produced of another good

An individual has an ABSOLUTE ADVANTAGE if it can produce more of that good, with the same resources, than anyone else
An individual has a COMPARITIVE ADVANTAGE in producing a good if it can do so at a lower opportunity cost than anyone else
SPECIALIZATION AND interchange: both sides are better off when they specialize in what theyre good at and trade
Positive economics: what is or what will be (based on fact)
Normative Economics: what should be or what should happen (opinion)
CHAPTER 3 SUPPLY AND DEMAND
A competitory market: many buyers and sellers of the same good or service
meter Demand: is the amount of a good service people are willing and able to purchase at a given...If you want to get a full essay, order it on our website: Ordercustompaper.com



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