Intro to Economics: Crash Course Econ #1

Alfred Marsh
A study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other more important side the study of man.
Economics
The study of people and choices.
Dwight D. Eisenhower
Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed those who are cold and are not clothed. The world in arms is not spending money alone. It is spending the sweat of it’s laborers, the genius of it’s scientists, the hopes of his children.
Incentives
A set of external (rather than intrinsic) motivators that explain people’s choices.
Macroeconomics
The study of production, unemployment, prices, and policies on a nationwide scale.
Opportunity Cost
Whatever you give up to do something.
Scarcity
The tension between infinite wants and finite resources.
Macroeconomic examples
Will unemployment rise if there’s an increase in taxes? Will an increase in the money supply boost output, or just increase inflation? Will a slump in European economies cause the U.S. economy to slow down?
Microeconomics
The study of how consumers, workers, and firms interact to generate outcomes in specific markets.
Microeconomics examples
How many workers should we hire to maximize profit? If our main competitor releases their product in May, when is the best time to release our product? Which is better at fighting climate change, a gas tax or increasing fuel efficiency?