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1、INTHISCHAPTERYOUWILL...LearnthateconomicsisabouttheallocationofscarceresourcesExaminesomeofthetradeoffsthatpeoplefaceLearnthemeaningofopportunitycostSeehowtousemarginalreasoningwhenmakingdecisionsDiscusshowincentivesaffectTENPRINCIPLESpeople’sbehavio
2、rOFECONOMICSConsiderwhytradeamongpeopleorThewordeconomycomesfromtheGreekwordfor“onewhomanagesahouse-nationscanbegoodhold.”Atfirst,thisoriginmightseempeculiar.But,infact,householdsandforeveryoneeconomieshavemuchincommon.Ahouseholdfacesmanydecisions.It
3、mustdecidewhichmembersofthehouseholddowhichtasksandwhateachmembergetsinreturn:Whocooksdin-ner?Whodoesthelaundry?Whogetstheextradessertatdinner?WhogetstoDiscusswhymarketschoosewhatTVshowtowatch?Inshort,thehouseholdmustallocateitsscarcere-areagood,butn
4、otsourcesamongitsvariousmembers,takingintoaccounteachmember’sabilities,perfect,waytoefforts,anddesires.allocateresourcesLikeahousehold,asocietyfacesmanydecisions.Asocietymustdecidewhatjobswillbedoneandwhowilldothem.Itneedssomepeopletogrowfood,otherpe
5、opletomakeclothing,andstillotherstodesigncomputersoftware.Oncesoci-Learnwhatetyhasallocatedpeople(aswellasland,buildings,andmachines)tovariousjobs,determinessometrendsintheoveralleconomy34PARTONEINTRODUCTIONitmustalsoallocatetheoutputofgoodsandservic
6、esthattheyproduce.Itmustdecidewhowilleatcaviarandwhowilleatpotatoes.ItmustdecidewhowilldriveaPorscheandwhowilltakethebus.Themanagementofsociety’sresourcesisimportantbecauseresourcesarescarcityscarce.Scarcitymeansthatsocietyhaslimitedresourcesandthere
7、forecannotpro-thelimitednatureofsociety’sduceallthegoodsandservicespeoplewishtohave.Justasahouseholdcannotresourcesgiveeverymembereverythingheorshewants,asocietycannotgiveeveryindi-vidualthehigheststandardoflivingtowhichheorshemightaspire.economicsEc
8、onomicsisthestudyofhowsocietymanagesitsscarceresources.Inmostthestudyofhowsocietymanagesitssocieties,resourcesareallocatednotbyasinglecentralplannerbutthroughthescarceresourcescombinedactionsofmillionsofhouseholdsandfirms.Economiststhereforestudyhowp
