Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Principles of MIcroeconomics - Reading Outline - Introduction

Principles of MIcroeconomics - Reading Outline - Introduction

Ratings: (0)|Views: 40|Likes:
Published by Katherine Sauer

More info:

Published by: Katherine Sauer on Sep 02, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

05/13/2014

pdf

text

original

 
 Name: __________________________________________ READING OUTLINE Principles of Microeconomics
 – 
Dr. Sauer 
Chapter 1: 10 Principles of EconomicsScarcity
refers to:
Economics is:I. How People Make Decisions
A. Principle #1: People face tradeoffs
Efficiency
means:
Equity
means:B. Principle #2: The cost of something is what you give up to get it
Opportunity cost
is:C. Principle #3: Rational people think at the margin
Rational people
refers to:A
marginal change
is:D. Principle #4: People respond to incentivesAn
incentive
is:Example: Gasoline prices and incentive effects
 
__________________________________________________________________________________
 In the News: Incentive Pay
___________________________________________________________________________________
II. How People Interact
 A. Principle #5: Trade can make everyone better off B. Principle #6: Markets are usually a good way to organize economic activityA
market economy
isC. Principle #7: Governments can sometimes improve market outcomes
Property rights
are:
Market failure
is:An
externality
is:
Market power
refers to:____________________________________________________________________________________
FYI: Adam Smith and the Invisible Hand 

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->