Limits, Alternatives and Choices of Economics

If ever I could careen into a study that would still have me intrigued after four weeks, it would be this one. Reading intensive economics is no joke and although technical reading has the ability to encourage somnolence, I found myself relating to these topics like I never would have last year working full time under the stability of my government job.







PART ONE
Chapter I – Limits, Alternatives and Choices
This chapter introduced economics as a social science examining how individuals, institutions, and society respond to the conditions of scarcity using freedom of choice.
The economic perspectives in three categories are:
Scarcity & Choice, Marginal Analysis, and Purposeful Behavior
Economy uses the scientific method; cause and effect relationships to develop theories, laws and principles; once combined models are executed.
When an individual’s wants exceeds the potential of their incomes and economic problem is invented.
When societal wants exceed available resources, the decision becomes what is necessary to produce and what ceases production of expendable resources.
Budget lines compare products and corresponding price illustrating the economic dilemma of individual consumption.
Economic resources (aka factors of production aka inputs) are classified as land, labor, capital, or entrepreneurial ability.
Production possibilities analysis tables and curves show the different combinations of goods and services that can be produced in a fully employed (utilized) economy with fixed factors of resource quantity, resource quality, and technology.
Under this concept, operations must sacrifice the output of some types of goods and services to increase the production of others (loss/gain).
Expansion and optimal production is satisfied when (MB) = (MC) or Marginal Benefit equals Marginal Cost.
Economic growth in recent times is heightened by technological advances, increases in the quantity and quality of resources by producing more of a good thing, variety of consumer goods and capital goods which are constantly arranging the production possibilities curve.