NU
ECON 1116 -
Lecture notes
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Principles of Microeconomics Chapter 1 Marginal change a small incremental adjustment to a plan of action e g one extra spoonful of food at dinner A rational person will take action if and only if the marginal benefit exceeds the marginal cost Trade allows countries to specialize in what they are good at and enjoy a variety of goods and services Market economy an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services Property rights the ability of an individual to own and exercise control over scarce resources
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