people face tradeoffs (principle 1 _ microecons)
description
- Principle of Scarcity / There Ainβt No Such Thing as a Free Lunch / People Face Tradeoffs
- TANSTAAFL (There Ainβt No Such Thing As A Free Lunch)
- Things appearing free always have some cost paid by somebody, and nothing in life is truly free
- In order to produce, you must give in resources β either you or the other pay the price
- To get one thing, we have to give up another
- Making decisions requires trading off one goal against another
- Efficiency vs. Equality
- Efficiency: Society gets the most it can from its scarce resources
- Equality: Benefits of those resources are distributed fairly among the members of society