Completed

Natural economical writing day to day basis

Opportunity Cost of decisions (both explicit AND implicit).

• Incentives to make decisions for firms and consumers.

• The Cost-Benefit principle: do not do something unless the marginal benefit exceeds the marginal

cost.

• Markets tend towards equilibriums where supply equals demand if there is no government

intervention.

• Efficiency is an important social goal, because when we have more of everything, people can share

in that more (in theory!).

• Markets and individuals generally ignore external costs and benefits, leading to socially inefficient

outcomes.

• Government intervention in markets is sometimes necessary.

• Often Government intervention does not work.

• Real GDP growth is an important, but imperfect, measure of economic progress

Skills: Economics

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