Intro To Economics Lecture Notes


Economics is the study of how society allocates limited resources to the production of goods and services to satisfy unlimited human wants.

They sold goods for half what they had cost.

This occurs when the economy is producing at the point on the PPC that is tangent to the social indifference curve where the marginal rate of transformation is equal to the marginal rate of substitution.

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From the previous calculation, we know that. The text is incomplete, and may contain many errors.

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      The mixed system is an economic system in which the three fundamental economic decisions of what and how much to produce, how to produce and for whom to produce are partly made by private individuals and partly made by the government.

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    An increase in the production capacity in the economy will lead to an outward shift in the PPC resulting in a decrease in scarcity, and vice versa.

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    ADVERTISEMENTS: In general terms, economics is a social science that studies the behaviour patterns of human beings. In some cases, the alternatives are grouped into a small number of categories, and we describe the preferences on X by specifying the preferences on the set of categories. Learning models, in which individuals make choices like those that have worked well for them in the past, have attracted particular attention from economic theorists and experimenters.

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