Economics Foundations
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Economics decides who gets what
Resources are limited. Economics concerns how society uses those resources and decides who gets what.
Income groups and wealth
Use five equal income groups, each containing 20% of families, and compare their income and net worth. Show the top 1% within the highest fifth.
Assets and income are different
Assets are what you own at a point in time. Income is what you receive over a period of time.
Consumption: competing for limited resources
Who gets to use up the resources we all need?
Taxation: fairness and incentives
Choose what to tax based on what you want to achieve.
Opportunity cost: what you give up
When you choose one thing, you give up the chance to do something else.
Marginal income and marginal taxation
If you work another hour, how much more do you bring home, and how much more is left after expenses?