Economic Way of Thinking. Scarcity. The condition that results from society not having enough resources to produce all the things people would like to have. Scarcity Qualifications. 1. Limited in quantity 2. Be desirable 3. Have more than one valuable use. Everything has a cost!.
The condition that results from society not having enough resources to produce all the things people would like to have.
1. Limited in quantity
2. Be desirable
3. Have more than one valuable use
No such thing as a Free Lunch!
Cost and Benefits
Different Values = Different Choices
Rent control in New York
Supply and Demand
Market vs Command Economies
As rules change incentives and behavior change
Makes them better off
No benefit = no trade
Economics is about trade!
Marginal choices involve the effects of additions and subtractions
Value is determined by the preferences of buyers and sellers
Rent controls make apartments more affordable to some.
Less profitable to build and maintain. (Friends)
It the theory correctly predicts the consequences of actions, it is a good theory!
Proof is in the pudding!
Economics is the study of how people satisfy wants with scarce resources
Buy one, Get one Free
Unlimited Wants choices.
WHAT to produce
HOW to produce
FOR WHOM to produce
Work that is preformed for someone
Intangible: cannot be touched
Person who uses goods and services to satisfy wants and needs
Value refers to a worth that can be expressed in dollars and cents