Economy...
...The word "economy" is derived from a Greek word meaning "home manager."
1.1.1 A household and an economy face many decisions:
- Who will work?
- What goods and how many of them should be produced?
- What resources should be used in production?
- At what price should the goods be sold?
1.1.2 Society and Scarce Resources:
The management of society’s resources is important because resources are scarce.
1.1.3 Scarcity...
...indicates that society has limited resources and, as a result, cannot produce all of the goods and services that people desire.
1.1.4 The subject of economics focuses on how society allocates its limited resources.
1.1.5 Economists study...
- How people make decisions.
- How people interact with each other.
- The forces and trends that affect the economy as a whole.
(Source: Gregory N. Mankiw)
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