[ECN 104] - Midterm Exam Guide - Everything you need to know! (63 pages long)

• School: Ryerson University
• Department: Economics
• Course: ECN 104
• Professor: Hakan Toksoy

Document Summary

Economics: the social science concerned with how individual, institutions, and society make optimal (best) choices under condition of scarcity. Free will market economy (no control authority: ex: america. Control planned economy (central authority as to what you consume and what you produce: ex: soviet union they solved the scarcity problem on its own. Basic principles of economics: how individuals make choices, how economies work through the interaction of individual choices, economy as a whole and the standard of living. Theories, principles and models: the individual"s economics problem, society"s economic problem. These costs can be both monetary and non-monetary: the word monetary can be misleading. Marginal analysis: comparing benefits and costs: how much is a decision made at the margin. Our decisions involve trade-off - we compare costs and benefits: the study of such decisions is marginal analysis. This does not mean that everyone is unemployed.