Scarcity means that society has limited resources and therefore cannot produce all the goods and services people wish to have
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Scarcity . . . . . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have
Economics Economics is the study of how society manages its scarce resources
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Economics Economics is the study of how society manages its scarce resources
Economists study o How people make decisions. o How people interact with each other. o The forces and trends that affect the economy as a whole
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Economists study. . . How people make decisions. How people interact with each other. The forces and trends that affect the economy as a whole
Ten Principles of Economics How People make Decisions 1. People face tradeoffs 2. The cost of something is what you give up to get it 3. Rational people think at the margin 4. People respond to incentives
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Ten Principles of Economics How People Make Decisions 1. People face tradeoffs. 2. The cost of something is what you give up to get it. 3. Rational people think at the margin. 4. People respond to incentives
Ten Principles of Economics How People Interact 5. Trade can make everyone better off 6. Markets are usually a good way to organize economic activity 7. Governments can sometimes improve economic outcomes
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Ten Principles of Economics How People Interact 5. Trade can make everyone better off. 6. Markets are usually a good way to organize economic activity. 7. Governments can sometimes improve economic outcomes