Dont Mess Essay

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Ch 1 Notes * Scarcity restricts options and demands choices. Because we “can’t have it all,” we must decide what we will have and what we must forgo. * Resources are used to produce each of these products, and because those resources have alternative uses, society gives up something else to get the “free” good. Where resources are used to produce goods or services, there is no free lunch. * Firms sometimes offer free products to entice people to try them, hoping they will then purchase those goods later. * In still other cases, the product is free only in conjunction with a larger purchase. * Ex, To get the free bottle of soda, you must buy the large pizza. To get the free cell phone, you need to sign up for a year’s worth of cell phone service. * opportunity costs: To obtain more of one thing, society forgoes the opportunity of getting the next best thing. That sacrifice is the opportunity cost of the choice. * utility—the pleasure, happiness, or satisfaction obtained from consuming a good or service * “Purposeful behavior” simply means that people make decisions with some desired outcome in mind. * marginal analysis—comparisons of marginal benefits and marginal costs, usually for decision making. * marginal” means “extra,” “additional,” or “a change in.” * Ex, Should you attend school for another year? Should you study an extra hour for an exam? Should you supersize your fries? Similarly, should a business expand or reduce its output? Should government increase or decrease its funding for a missile defense system? * scientific method. That procedure consists of several elements: * Observing real-world behavior and outcomes. * Based on those observations, formulating a possible explanation of cause and effect (hypothesis). * Testing this explanation by comparing the outcomes of specific

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