Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 50 views

    The Management of Society's Resources Is Important Because Resources Is Scarce

    Uploaded by

    Rodel Amante Medico
    1. Economics is the study of production, distribution, and consumption of goods and services. It examines how societies manage their scarce resources. 2. People face tradeoffs in decision making, where getting more of one thing requires giving up another. Rational people consider costs and benefits at the margin. 3. Markets are usually a good way to organize economic activity, as they allow people to specialize and gain from trade through the decentralized decisions of firms and households interacting. However, government can sometimes improve outcomes when markets fail.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    The Management of Society's Resources Is Important Because Resources Is Scarce

    Uploaded by

    Rodel Amante Medico
    50 views1 page
    1. Economics is the study of production, distribution, and consumption of goods and services. It examines how societies manage their scarce resources. 2. People face tradeoffs in decision making, where getting more of one thing requires giving up another. Rational people consider costs and benefits at the margin. 3. Markets are usually a good way to organize economic activity, as they allow people to specialize and gain from trade through the decentralized decisions of firms and households interacting. However, government can sometimes improve outcomes when markets fail.

    Original Title

    Economics

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Economics is the study of production, distribution, and consumption of goods and services. It examines how societies manage their scarce resources. 2. People face tradeoffs in decision making, where getting more of one thing requires giving up another. Rational people consider costs and benefits at the margin. 3. Markets are usually a good way to organize economic activity, as they allow people to specialize and gain from trade through the decentralized decisions of firms and households interacting. However, government can sometimes improve outcomes when markets fail.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    50 views1 page

    The Management of Society's Resources Is Important Because Resources Is Scarce

    Uploaded by

    Rodel Amante Medico
    1. Economics is the study of production, distribution, and consumption of goods and services. It examines how societies manage their scarce resources. 2. People face tradeoffs in decision making, where getting more of one thing requires giving up another. Rational people consider costs and benefits at the margin. 3. Markets are usually a good way to organize economic activity, as they allow people to specialize and gain from trade through the decentralized decisions of firms and households interacting. However, government can sometimes improve outcomes when markets fail.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Economics - The study of production, or firms action on the well-being of a bystander.

    distribution,and consumption of good and service. → Market power, which is the ability of a single
    Oikonomos - management of household. person or firms to unduly influence market
    Incentive - anything that encourage a person to do prices.
    something. 8. THE STANDARD LIVING DEPENDS ON
    The management of society’s resources is important COUNTRY’S PRODUCTION
    because resources is scarce. → Productivity is the amount of goods and services
    Scarcity - means that society has limited resources produced from each hour of a worker’s time.
    and therefore cannot produce all the goods and → Standard of living may be measured in different
    services people wish to have. ways:
    10 Principle of economics → By comparing personal incomes.
    1. PEOPLE FACE TRADEOFFS. → By comparing the total market value of a
    → “There is no such thing as a free lunch”. nation’s production’.
    → To get one thing, we usually have to give up 9. PRICES RISE WHEN THE GOVERNMENT
    another thing. PRINTS TOO MUCH MONEY
    → “Making decisions requires trading off one goal → Inflation is an increase in the overall level of of
    against another” prices in the economy.
    2. THE COST OF SOMETHING IS WHAT YOU → One cause of inflation is the growth in the
    GIVE UP TO GET IT. quantity of money.
    → Decisions is require comparing costs and benefit → When the government creates large quantities of
    of alternatives. money, the value of the money bills.
    → The opportunity cot of an item is what you give 10. SOCIETY FACES A SHORT-RUN TRADE-
    up to get that item. OFF BETWEEN INFLATION AND
    3. RATIONAL PEOPLE THINK AT THE MARGIN UNEMPLOYMENT
    → Marginal change is small . incremental → The Phllips curve illustrates the trade-off
    adjustments to an existing plan of action. between inflation and unemployment.
    → “People make decisions by comparing costs and Markets and Competition
    benefits at the margin”. A market is a group of buyers and sellers of a
    4. PEOPLE RESPONDS TO INCENTIVE particular product.
    → Marginal changes in costs or benefits motivate A competitive market is one with many buyers and
    people to responds. sellers, each has a negligible effect on price.
    → The decision to choose one alternative over (differentiated)
    another occurs when that alternative’s marginal In a perfectly competitive market all goods exactly
    benefits exceed its marginal costs! the same (identical)
    5. TRADE CAN MAKE EVERYONE BETTER Buyers & sellers so numerous that no one can affect
    OFF. market price – each is a “price taker”
    → People gain from their ability to trade with one Ceteris parebus - other things are equal.
    another. Equilibrum - meet the supply and demand.
    → Competition results in gains from trading DEMAND
    → Trades allow people to specialize in what they The quantity demanded of any good is the amount of
    do best. the good that buyers are willing and able to purchase.
    6. MARKETS ARE USUALLY A GOOD WAY TO Law of demand: the claim that the quantity
    ORGANIZE ECONOMIC ACTIVITY. demanded of a good falls when the price of the good
    → A market economy is an economy that allocates rises, other things equal
    resources through the decentralized decisions of Demand schedule: a table that shows the relationship
    many firms and household as they interact in between the price of a good and the quantity
    markets for goods and services. demanded
    → Adam smith made the observation that Examples of input prices: wages, prices of raw
    household and firms interacting in market act as materials.
    if guided by an “invisible hand”. Equilibrium quantity: the quantity supplied and
    7. GOVERNMENT CAN SOMETIMES IMPROVE quantity demanded at the equilibrium price
    MARKET OUTCOMES Surplus (excess supply):when quantity supplied is
    → Market failure occurs when markets fails to greater than quantity demanded
    allocate resources efficiently. Shortage (excess demand):when quantity demanded
    → Market failure may be caused by: is greater than quantity supplied
    → An externally, which is the impact of one person

    You might also like