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Chapter 1: Principles of Economics
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- 1.1: The Study of Economics
- The study of economics makes individuals cognizant of their environment and better decision makers.
- 1.2: Individual Decision Making
- When scarce resources are used, actors are forced to make choices that have an opportunity cost.
- 1.3: Interaction of Individuals, Firms, and Societies
- Firms allow an economy to operate more efficiently and reduce the transaction costs of coordinating production.
- 1.4: Basic Economic Questions
- A firm’s production outputs are what it creates using its resources: goods or services.
- 1.5: Economic Models
- Mathematical economics uses mathematical methods, such as algebra and calculus, to represent theories and analyze problems in economics.
- 1.6: Differences Between Macroeconomics and Microeconomics
- Macroeconomics is the study of the performance, structure, behavior and decision-making of an economy as a whole.