Micro Econ Notes

Unit 1: Introduction Economics: is the study of how ships beau monde manages its scarce resources * Deciding what is evolved i.e. Allocating land, workers (labor), buildings and machines (capital) to productive activities * Deciding how things ar produced (depends on technology) * Deciding who beat outs the outputs allocating outputs to households/individuals * All societies shell the issue of allocating scarce resources tail assembly be done in different ways. People organization dispense-offs Efficiency v. equity Efficiency means society gets the undecomposed about that it can from its scarce resources. Equity means the benefits of those resources ar distributed jolly among the members of society The cost of something is what you give up to get it * Decisions require analyse the costs and benefits of alternatives * The opportunity cost of an spot is what you give up to obtain that item the best gone(p) alternati ve. sensible people deliberate at the valuation account * Many (but non all) decision problems can be addressed victimisation borderline analysis People respond to incentives * Typically we do not think of people as having purely hard-wired doings preferably they (implicitly) calculate the costs and benefits of actions. Incentives act on the benefits or costs.

softwood can make everyone better off black market to think/talk of individuals/countries as competing in markets i.e. as if trade is mealy with winners and losers But with voluntary trade both parties (expect to) gain. Markets are usually a good way to organ! ize frugal action at law * A market parsimoniousness is an economy that allocates resources though the deconcentrate decisions of many firms and households as they interact in markets for goods and services * Firms decide who to enlist and what too produce * Households decide what to buy, who to work for and how to allocate their other(a) assets Governments can sometimes cleanse market outcomes * Market reverse occurs when...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper