ECON 1900 Midterm: Midterm Review Review for midterm up til midterm
16 Oct 2011
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Document Summary
Economics is make the best possible choice to get what they want. Scarcity is the inability to satisfy all of our wants. Absolute advantage is ability to produce a product/service at a lower absolute cost than another producer. Comparative advantage is ability to produce a product/service at a lower opportunity cost than another producer. Opportunity cost is the cost of choose one over another, the true cost of any choice made, Microeconomics analyzes the choices made by individuals in households, businesses, and governments. Macroeconomics analyzes the performance of the whole canadian and global economy. Implicit costs is opportunity costs of investing your own money or time. Negative externalities is cost that affect others who are external to a choice or trade. Damage to environment when you purchase gasoline to power your car. Positive externalities is benefit that affect others who are external to a choice or trade. Plant a beautiful garden in your lawn, your neighbor also benefit from it.
