Transcription of CHAPTER 1 Economics: Foundations and Models
{{id}} {{{paragraph}}}
Example: quiz answers
CHAPTER 1 Economics: Foundations and Models
CHAPTER 1| Economics: Foundations and Models CHAPTER Summary and Learning Objectives Three Key Economic Ideas (pages 4 7). Explain these three key economic ideas: People are rational. People respond to incentives. Optimal decisions are made at the margin. Economics is the study of the choices consumers, business managers, and government officials make to attain their goals, given their scarce resources. We must make choices because of scarcity, which means that although our wants are unlimited, the resources available to fulfill those wants are limited.
Economics is a social science because it applies the scientific method to the study of the interactions among individuals. Economics is concerned with positive analysis—what is—rather than normative analysis—what ought to be. As a social science, economics considers human behavior in every context of decision making, not just in business.
Loading..
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: