ECON 103 Chapter 1-4,7: ECON 103 Midterm 1 Review

• School: University of Victoria
• Department: Economics
• Course: ECON 103
• Professor: E.Hutchinson

Document Summary

Econ 103 midterm 1 review notes. Management is important due to scarcity: limited nature of society"s resources. Germany in the 1920"s and 70"s: society faces a short-run trade-off between inflation and unemployment. Increase in money in the economy stimulates spending (increase in demand and supply of goods: higher demand -> higher production -> higher employment rate. Why economists disagree: validity of alternative positive theories about how the world works, different values (normative, differences in scientific judgments, ex. Solar system revolving around earth theory (geocentricity: differences in values, policies, perception vs. Reality: slope (cid:4672)(cid:1871)(cid:1864)(cid:1867)(cid:1868)(cid:1857)= (cid:3052) (cid:3051) (cid:4673) (cid:4672)(cid:3033)(cid:3045)(cid:3046)(cid:3047) (cid:3052) (cid:3030)(cid:3042)(cid:3042)(cid:3045)(cid:3031)(cid:3041)(cid:3047)(cid:3032) (cid:3046)(cid:3032)(cid:3030)(cid:3042)(cid:3041)(cid:3031) (cid:3052) (cid:3030)(cid:3042)(cid:3042)(cid:3045)(cid:3031)(cid:3041)(cid:3047)(cid:3032) (cid:3033)(cid:3045)(cid:3046)(cid:3047) (cid:3051) (cid:3030)(cid:3042)(cid:3042)(cid:3045)(cid:3031)(cid:3041)(cid:3047)(cid:3032) (cid:3046)(cid:3032)(cid:3030)(cid:3042)(cid:3041)(cid:3031) (cid:3051) (cid:3030)(cid:3042)(cid:3042)(cid:3045)(cid:3031)(cid:3041)(cid:3047)(cid:3032)(cid:4673, cause and effect. Chapter 3 - interdependence and the gains for trade. Comparative advantage: the driving force of specialization: absolute advantage (comparison among producers of a good according to their productivity) Chapter 4 - supply and demand: how markets work.