文档介绍：: .
ervices depends on the incomes
that people earn.
. Land earns rent.
. Labor earns wages.
. Capital earns interest.
. Entrepreneurship earns profit.
© 2012 Pearson Addison-WesleyTwo Big Economic Questions
Self-Interest
You make choices that are in your self-interest—choices
that you think are best for you.
Social Interest
Choices that are best for society as a whole are said to be
in the social interest.
Social interest has two dimensions:
.Efficiency
.Equity
© 2012 Pearson Addison-WesleyTwo Big Economic Questions
Efficiency is achieved when the available resources are
used to produce goods and services:
the lowest possible price and
quantities that give the greatest possible benefit.
Equity is fairness, but economists have a variety of views
about what is fair.
The Big Question
Can choices made in self-interest promote the social
interest?
© 2012 Pearson Addison-WesleyTwo Big Economic Questions
Four topics that generate discussion and that illustrate
tension between self-interest and social interest are
. Globalization
. The information-age economy
. Global warming
. Economic instability
© 2012 Pearson Addison-Wesley : .
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WHAT IS ECONOMICS? : .
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WHAT IS ECONOMICS? : .
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