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1、INTHISCHAPTERYOUWILL...LearnthateconomicsisabouttheallocationofscarceresourcesExaminesomeofthetradeoffsthatpeoplefaceLearnthemeaningofopportunitycostSeehowtousemarginalreasoningwhenmakingdecisionsDiscusshowincentivesaffectTENPRINCIPLESpeople’sbehaviorOFECONOMICSConsiderwhy
2、tradeamongpeopleorThewordeconomycomesfromtheGreekwordfor“onewhomanagesahouse-nationscanbegoodhold.”Atfirst,thisoriginmightseempeculiar.But,infact,householdsandforeveryoneeconomieshavemuchincommon.Ahouseholdfacesmanydecisions.Itmustdecidewhichmembersofthehouseholddowhichtas
3、ksandwhateachmembergetsinreturn:Whocooksdin-ner?Whodoesthelaundry?Whogetstheextradessertatdinner?WhogetstoDiscusswhymarketschoosewhatTVshowtowatch?Inshort,thehouseholdmustallocateitsscarcere-areagood,butnotsourcesamongitsvariousmembers,takingintoaccounteachmember’sabilitie
4、s,perfect,waytoefforts,anddesires.allocateresourcesLikeahousehold,asocietyfacesmanydecisions.Asocietymustdecidewhatjobswillbedoneandwhowilldothem.Itneedssomepeopletogrowfood,otherpeopletomakeclothing,andstillotherstodesigncomputersoftware.Oncesoci-Learnwhatetyhasallocatedp
5、eople(aswellasland,buildings,andmachines)tovariousjobs,determinessometrendsintheoveralleconomy34PARTONEINTRODUCTIONitmustalsoallocatetheoutputofgoodsandservicesthattheyproduce.Itmustdecidewhowilleatcaviarandwhowilleatpotatoes.ItmustdecidewhowilldriveaPorscheandwhowilltaket
6、hebus.Themanagementofsociety’sresourcesisimportantbecauseresourcesarescarcityscarce.Scarcitymeansthatsocietyhaslimitedresourcesandthereforecannotpro-thelimitednatureofsociety’sduceallthegoodsandservicespeoplewishtohave.Justasahouseholdcannotresourcesgiveeverymembereverythi
7、ngheorshewants,asocietycannotgiveeveryindi-vidualthehigheststandardoflivingtowhichheorshemightaspire.economicsEconomicsisthestudyofhowsocietymanagesitsscarceresources.Inmostthestudyofhowsocietymanagesitssocieties,resourcesareallocatednotbyasinglecentralplannerbutthroughthe
8、scarceresourcescombinedactionsofmillionsofhouseholdsandfirms.Economiststhereforestudyhowp
