Chapter 1 . The most important information in this chapter is: .Economics is abo

Question

Chapter 1
. The most important information in this chapter is: .Economics is about the allocation of scarce resources. The fundamental lessons about individual decision-making are that people face trade-off . among alternative goals, that the cost of any action is measured in terms of forgone opportunities, that rational people make decisions by comparing marginal costs and marginal benefits, and that people change their behavior in response to the incentives they face. The fundamental lessons about interactions among people are that trade and interdependence can be mutually beneficial, that markets are usually a good way of coordinating economic activity among people, and that the government can potentially improve market outcomes by remeding a market failure or by promoting greater economic equality. The fundamental lessons about the economy as a whole are that productivity is the . ultimate source of living standards, that growth in the quantity of money is the ultimate source of inflation, and that society faces a short-run trade-off between inflation and unemployment.

Explanation / Answer

The most important information in chapter 1 of Brief Principles of Macroeconomics by N. Gregory Mankiw is "Economics is all about allocation of scarce resources". The chapter 1 of this famous book is in the title Ten Principles of Economics.This is also an important principle which economist deal. We all know resources in this universe are limited but wants are unlimited and economics deal with this.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.