After finishing chapter 1 you should be able to:
             1. Define the following terms: goods, services, resources, labor, capital, land, entrepreneurial ability, scarcity, and rational self interest.
             3. State the subject matter of economics.
             4. Distinguish between Microeconomics and Macroeconomics.
             5. Distinguish between positive and normative economics.
             6. State the goal of economic theory.
             8. Identify the implications of rational self-interest.
             9. Identify 3 common mistakes made in faulty economic analysis.
             The essence of economics is revealed by the answer to the question, "Who has everything that he or she desires to have?"
              The reality is that wants and desires are limitless while resources are scare.
              An item is scarce when the amount people desire exceeds the amount available at a zero price.
              Four broad categories of resources exist.
              The scarcity of resources has three important consequences.
              Goods and services are scarce.
              Scarce goods and services are not free, even if the price to the recipient is zero.
              Visit the web site for UNOS. Are organs for transplantation scarce? What evidence supports your conclusion?
              What are choices are being made by individuals?
              Why are they making these choices?
              How do these choices affect the decisions reached within organizations and governments?
              How will changes in the environment affect these choices and decisions?
              Since choice is universal and constant, the subject matter of economics is immense.
              Visit the McEachern Interactive Web site and list some of the choices discussed or implied in the first 4 EconDebates OnLine.
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