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Keep on loving one another as brothers and sisters. 2 Do not forget to show hospitality to strangers, for by so doing some people have shown hospitality to angels without knowing it.3Continue to remember those in prison as if you were together with them in prison, and those who are mistreated as if you yourselves were suffering. 4 Marriage should be honored by all, and the marriage bed kept pure, for God will judge the adulterer and all the sexually immoral. 5 Keep your lives free from the love of money and be content with what you have, because
Hebrew 13:1-8
God has said, Never will I leave you; never will I forsake you. 6 So we say with confidence, The Lord is my helper; I will not be afraid. What can mere mortals do to me? 7 Remember your leaders, who spoke the word of God to you. Consider the outcome of their way of life and imitate their faith. 8 Jesus Christ is the same yesterday, today, and forever. This is the word of the Lord
Let us Pray
Thank you so much Lord for your words. Indeed, you are the same yesterday, today, and tomorrow. No amount of challenges and frustrations will break our ties with you because you have been so faithful in our lives. Thank you so much for making us feel that we are so loved and protected. You have been our shield in facing this journey, called Life! We pray Lord that this class will be a lively center for sound learning, new discovery, and the pursuit of wisdom. Grant that those who teach and those who learn may find you to be the source of all truth; through Jesus Christ our Lord, Amen.
CHAPTER
1
The Scope and Method of Economics
Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.
Marginalism, and
Efficient markets
Opportunity Cost
Opportunity cost is the best alternative that we forgo, or give up, when we make a choice or a decision.
Opportunity costs arise because time and resources are scarce. Nearly all decisions involve tradeoffs.
Marginalism
In weighing the costs and benefits of a decision, it is important to weigh only the costs and benefits that arise from the decision. For example, when deciding whether to produce additional output, a firm considers only the additional (or marginal cost), not the sunk cost.
Sunk costs are costs that cannot be avoided,
regardless of what is done in the future, because they have already been incurred.
Efficient Markets
An efficient market is one in which profit opportunities are eliminated almost instantaneously. There is no free lunch! Profit opportunities are rare because, at any one time, there are many people searching for them.
behavior. A theory is a statement or set of related statements about cause and effect, action and reaction.
Empirical economics refers to the collection and use of data to test economic theories.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
believe that what is true for a part is also true for the whole. Theories that seem to work well when applied to individuals often break down when they are applied to the whole.
Economic Policy
Criteria for judging economic outcomes:
Efficiency, or allocative efficiency. An efficient economy is one that produces what people want at the least possible cost. Equity, or fairness of economic outcomes.
Growth, or an increase in the total output of an economy. Stability, or the condition in which output is steady or growing, with low inflation and full employment of resources.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Y = a + bX
where: Y = dependent variable X = independent variable a = Y-intercept, or value of Y when X = 0. + = positive relationship between X and Y
Y Y1 Y0 b= X X1 X 0
0 b 0 10
10 b 0
This line is relatively steep. Changes in the value of X have a greater influence on the value of Y.
Graph B has a negative slope, then a positive slope. Graph D shows a negative and decreasing slope.