Economics Chapter 1
McConnell−Brue−Flynn: Microeconomics: Principles, Problems, and Policies, 18th Edition
I. Introduction to Economics and the Economy
1. Limits, Alternatives, and Choices
© The McGraw−Hill Companies, 2009
IN THIS CHAPTER YOU WILL LEARN: 1 The definition of economics and the features of the economic perspective. 2 The role of economic theory in economics. 3 The distinction between microeconomics and macroeconomics. 4 The categories of scarce resources and the nature of the economizing problem. 5 About production possibilities analysis, increasing opportunity costs, and economic growth. 6 (Appendix) About graphs, curves, and slopes as they relate to economics.
1
Limits, Alternatives, and Choices
(An appendix on understanding graphs follows this chapter. If you need a quick review of this mathematical tool, you might benefit by reading the appendix first.) People’s wants are numerous and varied. Biologically, people need only air, water, food, clothing, and shelter. But in modern society people also desire goods and services that provide a more comfortable or affluent standard of living. We want bottled water, soft drinks, and fruit juices, not just water from the creek. We want salads, burgers, and pizzas, not just berries and nuts. We want jeans, suits, and coats, not just woven reeds. We want apartments, condominiums, or houses, not just mud huts. And, as the saying goes, “that is not the half of it.” We also want flat-panel TVs, Internet service, education, homeland security, cell phones, health care, and much more. Fortunately, society possesses productive resources, such as labor and managerial talent, tools and machinery, and land and mineral deposits. These resources, employed in the economic system (or simply the economy), help us produce goods and services that satisfy many of our economic wants.
3
McConnell−Brue−Flynn: Microeconomics: Principles, Problems, and Policies, 18th Edition
I. Introduction to Economics and the Economy
1.
I. Introduction to Economics and the Economy
1. Limits, Alternatives, and Choices
© The McGraw−Hill Companies, 2009
IN THIS CHAPTER YOU WILL LEARN: 1 The definition of economics and the features of the economic perspective. 2 The role of economic theory in economics. 3 The distinction between microeconomics and macroeconomics. 4 The categories of scarce resources and the nature of the economizing problem. 5 About production possibilities analysis, increasing opportunity costs, and economic growth. 6 (Appendix) About graphs, curves, and slopes as they relate to economics.
1
Limits, Alternatives, and Choices
(An appendix on understanding graphs follows this chapter. If you need a quick review of this mathematical tool, you might benefit by reading the appendix first.) People’s wants are numerous and varied. Biologically, people need only air, water, food, clothing, and shelter. But in modern society people also desire goods and services that provide a more comfortable or affluent standard of living. We want bottled water, soft drinks, and fruit juices, not just water from the creek. We want salads, burgers, and pizzas, not just berries and nuts. We want jeans, suits, and coats, not just woven reeds. We want apartments, condominiums, or houses, not just mud huts. And, as the saying goes, “that is not the half of it.” We also want flat-panel TVs, Internet service, education, homeland security, cell phones, health care, and much more. Fortunately, society possesses productive resources, such as labor and managerial talent, tools and machinery, and land and mineral deposits. These resources, employed in the economic system (or simply the economy), help us produce goods and services that satisfy many of our economic wants.
3
McConnell−Brue−Flynn: Microeconomics: Principles, Problems, and Policies, 18th Edition
I. Introduction to Economics and the Economy
1.