[ECON 208] - Midterm Exam Guide - Everything you need to know! (17 pages long)

• School: McGill University
• Department: Economics
• Course: ECON 208
• Professor: Mayssun El- Attar Vilalta

Document Summary

Economics : the study of scare resources to satisfy unlimited human wants. > ressources : limited -> choice (associated cost) -> opportunity cost (benefit given up by not using resources in the best alternative way: a production possibilities boundary (ppb) illustrates : The direct cost of the activity + Whatever you give up in order to do the activity - Growing productive capacity : new types of machines. Alter allocation of the eco"s resources -> make society a better whole improve the distribution of consumption across individuals. Why eco resources are sometimes idle (eg. unemployment: the nature of market economies. Economy : complex system individuals provide the goods and services individuals desire. No-one coordinate the whole set of efforts self interest makes possible -> you have access to everything you need. What creates this social order that we see in the economy: incentives and self-interest.