ECON 1B03 Lecture Notes - Lecture 1: Invisible Hand, Tim Hortons, Market Economy
48 views3 pages
20 Apr 2018
School
Department
Course
Professor
Shanghaibalcony1234 and 37744 others unlocked
46
ECON 1B03 Full Course Notes
Verified Note
46 documents
Document Summary
Economics: the study of how society allocates scarce resources to satisfy society"s unlimited wants. Scarcity: means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Microeconomics: focuses on the individual parts of the economy. i. e. how households and firms make decisions and how they interact in specific markets. Macroeconomics: looks at the economy as a whole. i. e. economy-wide phenomena, including inflation, unemployment, and economic growth. Market economy: allocates through the decentralized decisions of firms and households. Households decide what to buy and who to work for. Firms decide who to hire and how much to produce. Economic rationality: systematically and purposefully using information to make the best decisions for oneself to achieve one"s objectives. Perfect information: everyone knows everything with no uncertainty. Asymmetrical information: when someone knows more about something than does someone else. Example: a chef knows if the salmon is fresh but a prospective buyer does not.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.