Transcript ERP notes(class)

KRAUS’ ECONOMIC
REASONING PRINCIPLES
• PEOPLE
ECONOMIZE
IS
Question for Understanding
Think of a decision you made today
• Why did you make the choice you did?
KRAUS’ ECONOMIC
REASONING PRINCIPLES
• ALL CHOICES
INVOLVE COSTS
KRAUS’ ECONOMIC
REASONING PRINCIPLES
• PEOPLE RESPOND
TO INCENTIVES IN
PREDICTABLE
WAYS.
KRAUS’ ECONOMIC
REASONING PRINCIPLES
• ECONOMIC SYSTEMS
INFLUENCE INDIVIDUAL
CHOICES.
KRAUS’ ECONOMIC
REASONING PRINCIPLES
• VOLUNTARY
TRADE CREATES
WEALTH
I
KRAUS’ ECONOMIC
REASONING PRINCIPLES
• CONSEQUENCES
OF OUR CHOICES
LIE IN THE FUTURE
I