Index
- The economy is comprised of individuals taking part in actions and interactions.
- The economy is about using means to achieve ends.
- Means are necessarily scarce, ends are not.
- There is always a trade-off. Using a means to satisfy a particular end means that it now cannot be used to satisfy all of the other potential ends.
- Individuals economise by ranking things based upon their value in order to determine the action to participate in over all others.
The Economy
- The goal of economics is to understand how an economy functions.
- Individuals have desires that they strive to satisfy using different means.
The Economic Problem