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1、INTHISCHAPTERYOUWILL...1LearnthateconomicsisabouttheallocationofscarceresourcesExaminesomeofthetradeoffsthatpeoplefaceLearnthemeaningofopportunitycostSeehowtousemarginalreasoningwhenmakingdecisionsDiscusshowincentivesaffectTENPRINCIPLESpeople’sbehaviorOFECONOMICSCon
2、siderwhytradeamongpeopleorThewordeconomycomesfromtheGreekwordfor“onewhomanagesahouse-nationscanbegoodhold.”Atfirst,thisoriginmightseempeculiar.But,infact,householdsandforeveryoneeconomieshavemuchincommon.Ahouseholdfacesmanydecisions.Itmustdecidewhichmembersofthehous
3、eholddowhichtasksandwhateachmembergetsinreturn:Whocooksdin-ner?Whodoesthelaundry?Whogetstheextradessertatdinner?WhogetstoDiscusswhymarketschoosewhatTVshowtowatch?Inshort,thehouseholdmustallocateitsscarcere-areagood,butnotsourcesamongitsvariousmembers,takingintoaccou
4、nteachmember’sabilities,perfect,waytoefforts,anddesires.allocateresourcesLikeahousehold,asocietyfacesmanydecisions.Asocietymustdecidewhatjobswillbedoneandwhowilldothem.Itneedssomepeopletogrowfood,otherpeopletomakeclothing,andstillotherstodesigncomputersoftware.Onces
5、oci-Learnwhatetyhasallocatedpeople(aswellasland,buildings,andmachines)tovariousjobs,determinessometrendsintheoveralleconomy31TLFeBOOK2TenPrinciplesofEconomics4PARTONEINTRODUCTIONitmustalsoallocatetheoutputofgoodsandservicesthattheyproduce.Itmustdecidewhowilleatcavia
6、randwhowilleatpotatoes.ItmustdecidewhowilldriveaPorscheandwhowilltakethebus.Themanagementofsociety’sresourcesisimportantbecauseresourcesarescarcityscarce.Scarcitymeansthatsocietyhaslimitedresourcesandthereforecannotpro-thelimitednatureofsociety’sduceallthegoodsandse
7、rvicespeoplewishtohave.Justasahouseholdcannotresourcesgiveeverymembereverythingheorshewants,asocietycannotgiveeveryindi-vidualthehigheststandardoflivingtowhichheorshemightaspire.economicsEconomicsisthestudyofhowsocietymanagesitsscarceresources.Inmostthestudyofhowsoc
8、ietymanagesitssocieties,resourcesareallocatednotbyasinglecentralplannerbutthroughthescarceresourcescombinedactionsofmillionsofhouseholdsan
