ECON 101 Study Guide - Midterm Guide: Midpoint Method, Economic Surplus, Demand Curve

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: Mitchell Dudley

Document Summary

By acting upon one"s own self interest, by coincidence you also attend to the needs of the society. An example of market failure is traffic congestion. When traffic is congested, each driver is imposing a cost on all the other drivers on the road -- literally getting in their way and vice versa. Commuters do not take into account the costs they impose on other drivers when they decide whether to drive or not. Recessions are one of the main concerns of macroeconomics. Over the long-run the story of the u. s. economy contains many more ups than downs economic growth- the growing ability of the economy to produce goods and services this means that over time the economy will always grow. Resource- anything that can be used to produce something else. Scarce- when there"s not enough of the resource available to satisfy all the ways society wants to use it.