[ECON 1B03] - Final Exam Guide - Comprehensive Notes for the exam (25 pages long!)

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Aleksandra Gajic

Document Summary

Positive statement - fact based, can be verified and tested. Going over face-to-face questions as found posted online under content. 1: positive, normative, positive, positive, normative, positive, positive, positive, normative. For implicit choose 30 000$ because it is the second best forgone opportunity. To calculate the explicit costs, calculate the difference. If the going to school cost is higher, add the difference. If the going to school cost is lower, subtract it from the explicit cost add up the implicit and explicit costs to determine opportunity cost. A. there should be an constant opportunity cost ppf: the ppf does not change, but the value of hammers, as a point on the ppf moves towards hammers, the point of production is inside the ppf. It means that the resources are available, but it is not being used efficiently. This question would be seen as a multiple choice question broken down into maybe two questions.