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3、PrinciplesofEconomicsEconomy–“oikonomos”(Greek)“Onewhomanagesahousehold”Household-manydecisionsAllocatescarceresourcesAbility,effort,anddesireSociety-manydecisionsAllocateresourcesAllocateoutput3©2012CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicat
4、ed,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TenPrinciplesofEconomicsResourcesarescarceScarcityThelimitednatureofsociety’sresourcesEconomicsStudyofhowsocietymanagesit
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7、rserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.HowPeopleMakeDecisionsPrinciple1:Peoplefacetrade-offsMakingdecisionsTradeoffonegoalagainstanotherStudent–timeParents–incomeSocietyNationaldefensevs.consumergoodsCleanenvironmentvs.highlevelofincomeEfficie
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