compare these with what you decided not to do‚ or consume. If you minimized your opportunity costs‚ then you have chosen all the things that provide you with the maximum amount of benefit. 3. Consider whether it is ever possible to solve the problem of scarcity. No‚ because resources are finite and wants are unlimited. 4. An economy produces two goods‚ Ferraris and Ray-Ban sunglasses. Using a production possibility frontier assess what must happen to the production of Ferraris‚ if the
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A. Introduction 1. What is economics? Economics is the study of how societies choose to use scarce productive resources that have alternative uses‚ to produce commodities of various kinds‚ and to distribute them among different groups. We study economics to understand not only the world we live in but also the many potential worlds that reformers are constantly proposing to us. 2. Goods are scarce because people desire much more than the economy can produce. Economic goods are scarce‚ not free‚
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13 Engineering Economics 1.0 INTRODUCTION The broad field of economics may be divided into macro and micro economics. Macroeconomics involves problems associated with nations such as trade‚ trade deficits‚ monetary policy‚ national productivity‚ growth of the economy‚ inflation‚ budget deficits‚ national debt‚ unemployment‚ tariffs‚ etc. Microeconomics involves problems of firms and of individuals. Engineering economics is a special branch of microeconomics largely involved with the analysis
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Managerial Economics and Economics Managerial Economics has been described as economics applied to decision making. It may be viewed as a special branch of economics bridging the gulf between pure economic theory and managerial practice. Economics has two main divisions :- (i) Microeconomics and (ii) Macroeconomics. Microeconomics has been defined as that branch of economics where the unit of study is an individual or a firm. Macroeconomics‚ on the other hand‚ is aggregate in character and has
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GEORGIA PERFORMANCE STANDARDS Fundamental Economic Concepts SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity‚ opportunity costs and trade offs for individuals‚ businesses and governments. Individuals have wants that are‚ for practical purposes‚ unlimited. But the total resources of society‚ including natural resources‚ human resources‚ capital goods and entrepreneurship‚ are limited‚ so that scarcity exists. As a result‚ it isn’t possible
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Economic System "Resources are scarce but demands are unlimited." (Anderton‚ 2000: 273) Therefore‚ resources have to be allocated in terms of what to produce‚ how to produce‚ and for whom to produce. (Case & Fair‚ 2004) Economic system is a way of answering the three basic economics problem. "An economic system is a collection of laws‚ institutions and‚ activities‚ that provide a framework for economic decision-making." (http://ecedweb.unomaha.edu/lessons/lesson2.htm) Each part of it interacts
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we will Learn in this Course 1. what influences people’s decisions about what and how much to consume? 2. what influences firms’ decisions about what and how much to produce? 3. how are product prices determined? 4. how to think about/solve economic problems that you can use in later courses and throughout your careers Learning Techniques 1. mathematical models quick and general predictions 2. worked mathematical examples & exercises 3. some classroom demonstrations ECMB02_Topic1_Overheads
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GROUP 3 ECONOMICS Standard and Higher Level INTRODUCTION The study of economics from an individual‚ a firm‚ a business‚ governmental and international perspectives are being increasingly important today. In the world of continuing globalization and technological developments‚ decisions made today by an individual or society can have a multiplier effects on other businesses and countries. Therefore‚ there is a need for an understanding of human experience and behaviour made in the economic environment
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ECNOMICS: Economics is the social science that analyzes the production‚ distribution‚ and consumption of goods and services. Different economists has given different definations of economics. The philosopher Adam Smith (1776) defines the subject as "an inquiry into the nature and causes of the wealth of nations. According to Alfred Marshall Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus‚ it is on the one side‚ the study
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Economic System The 3 Types of Economic Systems - Centrally planned economy - Mixed economy - Market economy Centrally planned economy System in which a nation’s resources are owned by the government. Came from the ideology that the welfare of the group is more important than individual well being‚ the idea came from Karl Marx. The decline of Centrally planned economies was in the 1980’s nations began to dismantle communist central planning in favor of market based economy. Mixed economy
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