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  • Principles of Micro ch1

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    Victoria Schwerter
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    1. People face trade-offs when making decisions and must compare costs and benefits at the margin. Rational individuals make choices this way. 2. Trade can make everyone better off by allowing people to specialize in what they do best and increasing the variety available to consumers at lower costs. 3. A country's standard of living depends on its ability to produce goods and services. The total market value of what workers can produce determines overall living standards within a nation.

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    Principles Of Micro ch1

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    1. People face trade-offs when making decisions and must compare costs and benefits at the margin. Rational individuals make choices this way. 2. Trade can make everyone better off by allowing people to specialize in what they do best and increasing the variety available to consumers at lower costs. 3. A country's standard of living depends on its ability to produce goods and services. The total market value of what workers can produce determines overall living standards within a nation.

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    6 views1 page

    Principles of Micro ch1

    Uploaded by

    Victoria Schwerter
    1. People face trade-offs when making decisions and must compare costs and benefits at the margin. Rational individuals make choices this way. 2. Trade can make everyone better off by allowing people to specialize in what they do best and increasing the variety available to consumers at lower costs. 3. A country's standard of living depends on its ability to produce goods and services. The total market value of what workers can produce determines overall living standards within a nation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    1 : 10 PRINCIPLES OF ECONOMICS

    Chapter
    1. 1 HOW People Make Decisions

    ◦
    10 Princip / es
    1. People face trade -

    offs Making
    :
    decisions requires traiding One
    goal aqainst

    É
    another

    The cost 9- somethin is what cost


    9 you olive up to
    get it :
    Opportunity
    Rational people think
    EE
    3 .
    at the
    margin peuple: make Decisions
    by Camparing
    ¡ costs & benefits at the margin
    4.
    People resp and to incentivos

    ¡ÉÉ
    5. Trade do best
    can make
    ereryone beHer Off : alIOWS people to do what
    they
    -

    &s available
    increase
    variety
    -

    of q
    -

    towers cost for Consumers

    mama,,
    . , are
    uwauy gaoaway no
    organiza economia
    am.my
    , ¡ nn.gg,, nana

    7. Govs . can Sometimes improv Market outcomes :


    promoting efficiency &
    equity
    its produce g &si
    8.
    Country's Standard of living de penas on
    ability to

    É ÉÜ
    ↳ Standard measured
    of Living voy comparinq personal incomes
    →

    HOW mvch Worker can

    1- produce × nourotwork
    → "
    total Market VAWC Of
    O de termines Overall
    Z
    living
    Standards Within nation
    nations production
    $ rise
    .
    when
    gov prints
    .
    too muon
    money inflatón
    :

    g.
    muy gaae, www.nmmaaeqgwween ¡
    µ,aman a
    unemp,ayman,

    Micro economics

    →
    study Of how tirms
    & households make

    decisions & how


    they internet in
    specific Markets

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