Natural economical writing day to day basis

Opportunity Cost of decisions (both explicit AND implicit). • Incentives to make decisions for firms and consumers. • The Cost-Benefit principle: do not do something unless the marginal benefit exceeds the marginal cost. • Markets tend towards equilibriums where supply equals demand if there is no government intervention. • Efficiency is an important social goal, because when we have more of everything, people can share in that more (in theory!). • Markets and individuals generally ignore external costs and benefits, leading to socially inefficient outcomes. • Government intervention in markets is sometimes necessary. • Often Government intervention does not work. • Real GDP growth is an important, but imperfect, measure of economic progress