Economic: How to allocate the scarce resources

10 Principles of economic:
- Principle 1: People face trade trade-off
Why : our budget is limited, resources are limited ,….
Ex: how student allocate time. Stay in class, trade-off your hobby, for
instance

- The cost of soomething is what you give up to get – make decision

+ compare costs with benefit
+ include opporturnity costs ( chi phí lựa chọn)
- Rational people think at the margin (phúc lợi bên lề)
- Ttt
- Trade can make everyone better off
- Market are ussually a good ưay to organize economic activity
When the gorvernment make the decision, can the profit be maximized?
Hard, government an maximized the total benefit with one condition:
when they understand all the benefit of customers (nearly cannot)
impossible
- Government can sometimes improve market outcomes
- Principle 8 9 10: (read at home)
 Question(home)

 ECONOMIC

Micro economic Macro economic

Market Firm Behavior Consumers

Economy Maximize the behavior
-Buyer: D profit
- Seller: S -Competitive
-Monopoly
-oligopoly
-monopolistic