ECON102 Lecture Notes - Lecture 1: Opportunity Cost, Marginal Cost, Marginal Utility

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Joseph Dejuan

Document Summary

Midterms are all mcqs 70 100 questions. Macroeconomic fundamentals: multiple choice can be definitions. Macroeconomic fluctuation: aggregate demand & supply, explain fluctuations and volatility, look at economic models, define what economic models are, clarify fluctuations, economic models ppc, supply & demand, business cycle, stabilization policy. Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and incentives that influence and reconcile those choices. All economic questions arise because we want more than we can get. Our inability to satisfy all our wants is called scarcity. Because we face scarcity, we must make choices. The choices we make depend on the incentives we face. Since we cannot get everything we want we need to make a choice. An incentive is a reward that encourages an action or a penalty that discourages an action. Our decisions to deal with scarcity are motivated by incentives, can be good or bad incentives.