Economics

BY THE END OF THIS CHAPTER, STUDENTS SHOULD UNDERSTAND: that economics is about the assignation of scrimpy resources. that individuals face tradeoffs. the meaning of opportunity cost. how to use fringy reasoning when making decisions. how incentives affect peoples behavior. why trade among people or nations can be well-grounded for every 1. why markets are a good, but not perfect, mode to allocate resources. what determines around trends in the overall providence. I. INTRODUCTION The word economy comes from the Greek word oikonomos meaning one who manages a household. This makes some sense because in the economy we are faced with many decisions (just as a household is). Fundamental economic trouble: resources are scarce. interpretation of scarcity: the limited nature of unions resources. Definition of economics: the study of how corporation manages its scarce resources. o How people decide how much to work, save, and spend, and what to buy o How business firms decide how much to produce, how many workers to hire o How society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other call for This chapter discusses Ten prescripts of Economics. DBMSPCE | Economics for Managers, Chapter-1, Instructor: Prof. B. K.

Patel 1 II. HOW PEOPLE MAKE DECISIONS Principle #1: People Face Trade-offs There is no much(prenominal) thing as a free lunch. To get one thing that we like, we usually have to give up some other thing that we like. Making decisions requires trading one goal for another. Examples embarrass how students spend their time, how a family decides to spend its income, how the Indian government spends revenue, and how regulations may protect the environment at a cost to firm owners. A special example of a trade-off is the trade-off between efficiency and equity. o Definition of efficiency: the lieu of society getting the maximum benefits from its scarce resources. o Definition of equity:... If you want to get a full essay, smart set it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .