ECON 1B03- Final Exam Guide - Comprehensive Notes for the exam ( 27 pages long!)

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28 Mar 2018
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ECON 1B03 Full Course Notes
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ECON 1B03 Full Course Notes
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How households and firms make decisions and how they interact in specific markets: macroeconomics: focuses on things which effect the economy as a whole, ex. Implicit cost: costs that have already occurred/you can get a receipt for: explicit cost: costs which could have occurred/cannot get a receipt for. Example: you decide to attend university which makes you spend on tuition, on books, and. Instead of coming to school, you could have had a job at tim hortons in which you could have earned or you could have had a job at walmart where you would have earned . Implicit costs: + + =. Explicit costs: (you only consider the best forgone alternative) Therefore, the opportunity cost of going to university was losing 000. Marginal thinking: marginal changes: small, incremental changes, economically rational thinkers make decisions at the margin, ex.