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Economics Chapter 1 Economics Chapter 1
What is economics?: it is the science of making choices. This included individuals, businesses, and government. Making choices has economic impact.Two key elements involved in economic decisions are insatiability and scarcity. Insatiability means that everyone has unlimited wants. Scarcity means that everything is limited in supply.
The word economics is the product of two Greek words: oikos which means house and nomos which means administration of.
Economic cost is the value people place on a good service.-JB
The Diamond- Water Paradox is the riddle that asks which is more valuable, a handful of diamonds or a glass of water; solved by Karl Menger in 1871 when he proposed that value is not inherent in an object but rather is determined by the buyer.-JB
Opportunity benefit is the satisfactions a person receives from a choice.
Opportunity cost is the satisfactions one gives up or the regret one experiences for not choosing a desirable alternative.-JB Am I done yet?
