ECON 20A Lecture Notes - Lecture 1: Opportunity Cost, Marginal Utility, Invisible Hand
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19 Oct 2017
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Chapter 1 the ten principles of economics. The one who manages a household (greek) Households and economies have much in common. A household must allocate resources: taking into account: ability, effort, desire. Society faces many decisions: allocate resources and output. Scarcity: the limited nature of society"s resources. Households and society has limited resources therefore cannot produce all the goods and services people wish to have. The study of how society allocates its sparse resources. How people make decisions: work, buy, save, invest. How people interact with one another: buyers and sellers. How society decides to divide its resources: national defense vs consumer goods. The forces and trends that affect the economy as a whole (macroeconomics, like gdp, etc not covered in this course: growth in average income, employment rate. There is no such thing as free lunch . To get something we like, we usually have to give up something else that we also like.
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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.