microeconomics

• Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society
• Coordination in economics refers to how the three central problems facing any economy are solved:

  1. What, and how much, to produce.

  2. How to produce it.

  3. For whom to produce it
• Scarcity occurs when the goods available are too few to satisfy individuals’ desires, with wants and means of fulfilling those wants being the two elements of scarcity
• Trade-offs consist of all the options available when making choices, representing the things that need to be given up
• Opportunity cost is the most desirable alternative given up when making a choice, representing the benefit that could have been gained from choosing the next-best alternative
• Microeconomics studies individual choice and how it is influenced by economic forces, such as pricing policies of firms and resource allocation in markets
• Macroeconomics focuses on the economy as a whole, considering issues like inflation, unemployment, business cycles, and growth
• Marginal cost is the additional cost incurred from producing one more unit, while marginal benefit is the added satisfaction from consuming an additional unit of a good or service
• The economic decision rule states that if the marginal benefits of an action exceed the marginal costs, it should be done; if the opposite is true, it should not be done
• Economic forces, social forces, and political forces all play a role in controlling and directing economic reality
• Positive economics studies what is and how the economy works, while normative economics focuses on what the goals of the economy should be
• The art of economics, also known as political economy, applies the knowledge from positive economics to achieve the goals determined in normative economics
• Economy is the state of a country in terms of the production and consumption of goods, services, and supply of money
• Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society
• Coordination in economics refers to how the three central problems facing any economy are solved:

  1. What, and how much, to produce

  2. How to produce it

  3. For whom to produce it
• Scarcity is when the goods available are too few to satisfy individuals’ desires, with wants and means of fulfilling those wants being the two elements of scarcity
• Trade-offs in economics are the options we have to give up when making choices, consisting of all the alternatives offered
• Opportunity cost is the most desirable alternative given up when making choices, representing the benefit that could have been gained from choosing the next-best alternative
• Economy is the state of a country in terms of the production and consumption of goods, services, and supply of money
• Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society
• Coordination in economics refers to how the three central problems facing any economy are solved:

  1. What, and how much, to produce

  2. How to produce it

  3. For whom to produce it
• Scarcity occurs when the goods available are too few to satisfy individuals’ desires, with wants and means of fulfilling those wants being the two elements of scarcity
• Trade-offs in economics refer to the options that need to be given up when making choices
• Opportunity cost is the most desirable alternative given up when making a decision, representing the benefit that could have been gained from choosing the next-best alternative
• Microeconomics focuses on individual choice and how economic forces influence those choices, while macroeconomics studies the economy as a whole, considering problems like inflation, unemployment, and growth
• Marginal costs are the additional costs incurred from producing one additional unit, while marginal benefits are the additional satisfaction or utility gained from an extra unit of a good or service
• The economic decision rule states that if the marginal benefits of doing something exceed the marginal costs, it should be done; if the opposite is true, it should not be done
• Market forces, social forces, and political forces are the three types of forces that control and direct economic reality
• Positive economics studies what is and how the economy works, while normative economics focuses on what the goals of the economy should be
• The art of economics, also known as political economy, applies the knowledge from positive economics to achieve the goals determined in normative economics
• Economy is the state of a country in terms of the production and consumption of goods, services, and supply of money
• Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society
• Coordination in economics refers to how the three central problems facing any economy are solved:

  1. What, and how much, to produce

  2. How to produce it

  3. For whom to produce it
• Scarcity occurs when the goods available are too few to satisfy individuals’ desires, with wants and means of fulfilling those wants being the two elements of scarcity
• Trade-offs in economics refer to the things that need to be given up when making choices, consisting of all the options available
• Opportunity cost is the most desirable alternative that you give up when making a decision, representing the benefit you might have gained from choosing the next-best alternative
• Microeconomics focuses on individual choice and how economic forces influence those choices, studying pricing policies of firms, households’ decisions, and resource allocation in markets
• Macroeconomics studies the economy as a whole, analyzing problems like inflation, unemployment, business cycles, and growth, focusing on aggregate relationships and government policies' impact on growth
• Marginal costs are the additional costs incurred from producing one more unit, while marginal benefits are the additional benefits derived from consuming one more unit of a good or service
• The economic decision rule states that if the marginal benefits of doing something exceed the marginal costs, then it should be done; if the opposite is true, then it shouldn't be done