Page 1: Basic Economic Concepts and Scarcity
This page introduces core economic concepts and the principle of scarcity. It covers the definition of economics, the difference between macroeconomics and microeconomics, and how economics is applied in practice.
Definition: Economics is the study of making choices and the science of scarcity.
The page also explains the difference between positive and normative economics, and outlines five key economic assumptions.
Highlight: The five key economic assumptions include the concept of scarcity, the necessity of making choices, self-interest, marginal analysis, and the use of simplified models.
Lastly, it introduces the concept of marginal analysis, which is crucial in economic decision-making.
Vocabulary: Marginal analysis refers to making decisions based on increments, comparing additional costs and benefits.