Cours de Mathématiques de Spé

EconomicsCuthbert YoulldieDecember 7, 2008Chapter 1Ten Principles of EconomicsEconomy The word economy comes from a Greek word for "one who managesa household"Society and scarce Resources The management of Society’s ressources isimportant because resources are scarce.Scarcity implies choice and choice implies cost.Scarcity means society has limited resources and therefor cannot productall the goods and services people wish to have.Economics Economics is the study of how society manages its scarce resources.In order to begin to understand economics, you must rst understandthe concept of scarcity and the two branches of study within economics :microeconomics and macroeconomics.Macroeconomics Looks at the total output of a nation and the way thenation allocates its limited resources of land, labor and capital.Microeconomics Looks at similar issues but on the level of the individ-uals and companies.Economist study They study :1. How people make decision2. How people interact with each other3. The forces that a ect the economy as a whole1Principles 1. People face trade-o s2. The cost of something is what you give up to get it3. Rational people think at the margin24. People respond to incentives5. Trade can make everyone better o 1Substitution.2O res promotionnelles.16. Markets are usually a good way to organize economic activity7. Governments can sometimes improve economic outcomes8. They standend of living depends on a country’s production9 ...