1.) Study of scarcity (cont.)..... There's not enough stuff to go around so everytime we make a decision, we usually have to make some sort of trade-off. Going into every decision, we usually consider expected benefits and expected costs. We (should at least) think rationally. In this way we economize. And finally, the natural state of man is poverty, not wealth.
2.) The definition of economics is: the study of the emergence of order and wealth creation and the consequences of the choices made as part of the extended order of human cooperation. This definition addresses not only our response to scarcity but the unintended consequences of our decisions and how they affect other social and economic norms. Economics involves prudence as well as temperance.
3.) Micro vs. Macro Economics..... Micro is the study of price theory, why we do the things we do and everything that drives our decisions. Macro is the study of the consequences of our decisions as well as disequilibrium theory, how everything fluctuates in response to the decision.
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