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1、INTHISCHAPTERYOUWILL...LearnthateconomicsisabouttheallocationofscarceresourcesExaminesomeofthetradeoffsthatpeoplefaceLearnthemeaningofopportunitycostSeehowtousemarginalreasoningwhenmakingdecisionsDiscusshowincentivesaffectTENPRINCIPLESpeople’sbehaviorOFECONOMICSConsiderwhytradeamongpeopleorT
2、hewordeconomycomesfromtheGreekwordfor“onewhomanagesahouse-nationscanbegoodhold.”Atfirst,thisoriginmightseempeculiar.But,infact,householdsandforeveryoneeconomieshavemuchincommon.Ahouseholdfacesmanydecisions.Itmustdecidewhichmembersofthehouseholddowhichtasksandwhateachmembergetsinreturn:Whocoo
3、ksdin-ner?Whodoesthelaundry?Whogetstheextradessertatdinner?WhogetstoDiscusswhymarketschoosewhatTVshowtowatch?Inshort,thehouseholdmustallocateitsscarcere-areagood,butnotsourcesamongitsvariousmembers,takingintoaccounteachmember’sabilities,perfect,waytoefforts,anddesires.allocateresourcesLikeah
4、ousehold,asocietyfacesmanydecisions.Asocietymustdecidewhatjobswillbedoneandwhowilldothem.Itneedssomepeopletogrowfood,otherpeopletomakeclothing,andstillotherstodesigncomputersoftware.Oncesoci-Learnwhatetyhasallocatedpeople(aswellasland,buildings,andmachines)tovariousjobs,determinessometrendsi
5、ntheoveralleconomy34PARTONEINTRODUCTIONitmustalsoallocatetheoutputofgoodsandservicesthattheyproduce.Itmustdecidewhowilleatcaviarandwhowilleatpotatoes.ItmustdecidewhowilldriveaPorscheandwhowilltakethebus.Themanagementofsociety’sresourcesisimportantbecauseresourcesarescarcityscarce.Scarcitymea
6、nsthatsocietyhaslimitedresourcesandthereforecannotpro-thelimitednatureofsociety’sduceallthegoodsandservicespeoplewishtohave.Justasahouseholdcannotresourcesgiveeverymembereverythingheorshewants,asocietycannotgiveeveryindi-vidualthehigheststandardoflivingtowhichheorshemightaspire.economicsEcon
7、omicsisthestudyofhowsocietymanagesitsscarceresources.Inmostthestudyofhowsocietymanagesitssocieties,resourcesareallocatednotbyasinglecentralplannerbutthroughthescarceresourcescombinedactionsofmillionsofhouseholdsandfirms.Economiststhereforestudyhowp