CAS EC 102 Study Guide - Final Guide: Class Conflict, Conspicuous Consumption, S&P 500 Index
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CAS EC 102 Full Course Notes
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Macroeconomics: studies market forces beyond the control of any one person, family or company, management of scarcity, society has limited resources (cid:0) can"t produce all the goods and services people wish to have. Incentives: anything that causes people to change their actions. Negative (cid:0) punishment: money, very big incentive (cid:0) reward, very powerful. Must have double coincidence of wants (if no money: this is eliminated with money. Less time to trade = more time to produce i. ii. i. ii. iii. i. ii. i. i. ii: signal of quality, used as a measuring stick. Life (cid:0) wealth: scarcity, at any moment in time, needs and desires > available resources, easily seen in poor places. Lack of roads, water, health care : rich places too. On a different scale than the poorer places but still exists d. To get one thing, we give up something else: leisure time vs. work, defense spending vs. domestic spending.
