Economics Chapter1Economics Chapter1- 要要要要要要要要要要- 1.what is economics?(1)Economics is the study of how people allocate 要要 their limited resources to satisfy 要要 their nearly unlimited wants. (p6)(2)Economics is a way of thinking.It entails accounting describing economic event occur, predicting under what circumstances such events might take place in the future, and recommending appropriate courses of action.----John Taylor要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要- 2.Essentials(要要要) of Economics:4 ways to think like an economist.A. all choices entail opportunity costs.Opportunity Costs: 要要要要要要要要要要要要要要B. decisions are made at the margin. 要要要要要要要要要要要要要Marginal analysis 要要要要要要要要要要要要要要要要要要C. Incentives matter.要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要D. Trade creates value.要要要要要要要要要要- Victor Fuchs(要要): 5 aphorisms(要要) about economic thinking .A. There is no free lunchEverything has cost 要要要要要要B. There is more than one way to skin a cat要要要要要要要要要要要要要要要要要要要要要要要要要要C. Nature doesn’t make leaps要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要D. There can be too much of a good thing要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要E. Time is money.要1要 要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要要2要