ECON 1BB3 Study Guide - Midterm Guide: Opportunity Cost, Comparative Advantage, Monopolistic Competition

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Econ 1bb3 lecture 1 september 6,2013: course outline is on avenue, term tests 45% , final exam ( chapter 5-15) 40% , tutorial quizzes 5%, Math review test (optional) 2%, homework (optional) 8: bundle from bookstore (textbook, study guide, aplia access card) for the. Micro and macro superpack ( saves you 65$: 14 homework assignments, she grades top 10. Chapter 1 (10 principles of economics: people face trade-offs, the cost of something is what you give up to get it opportunity cost, rational people think at the margin/edge/extra/additional. They"re looking at the next step: people respond to incentives, trade can make everyone better off, markets tend to increase efficiency. Sometimes they don"t always produce the desired amount: sometimes the government can eliminate market inefficiencies. Externalities: can be positive or negative: a countries standard of living depends on its productivity, prices increase when the government prints too much money, there is a short run trade off between inflation and unemployment.