Krugman AP Macro Economics Chapter 1
Subject:
Economics [1]
Tags:
economics [3]
Microeconomics [5]
Costs [6]
Marginalism [7]
Value theory [8]
Marginal utility [9]
Labour economics [10]
Marginal cost [11]
Health economics [12]
behavior [13]
Human development [14]
Computing [15]
Electronic documents [17]
Psychoanalysis [19]
Human behavior [20]
Attachment theory [22]
Technology [23]
Business [24]
Chapter 1: The Study of Economics ? Economics: The study of scarcity and choice- individual choice Individual Choice: Decisions made by an individual of what to/not to do Economy: System that coordinates consumption and distribution of goods/services Market Economy: Decentralized production, publicly owned, no authority saying what to/not to make (ex: United States) Command Economy: Central authority, publicly owner, don?t work very well (ex: Soviet Russia) Problem: lack of motivation, better quality work doesn?t make more money, ineffective supply&demand Property rights: Establishes ownership causing incentive to work and thus production to increase Marginal Analysis: Study of marginal decisions, the pros and cons of doing a little bit more or less