[ECN 104] - Final Exam Guide - Everything you need to know! (82 pages long)
30 Mar 2017
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Document Summary
Market system encourage extensive use and rapid development of complex capital goods: direct methods of production are least efficient; to avoid, must rely on capital goods. A curve illustrating the inverse relationship between quantity demanded of good or service and its price: downward slope reflects law of demand. Three categories of 10 key concepts: concepts that pertain to individual, concepts that explain interaction among individuals, concepts that deal with economy as a whole and standard of living. Interaction among individuals: specialization and trade: improves well-being of all participants, market effectiveness: good job at co-ordinating trade among individuals, groups and nation by market, role of government: gov"t occasionally improves the co-ordinating function of markets. Economic perspective: a viewpoint where rational decisions are made by comparing marginal benefits and marginal costs with associated actions. Scarcity: limits placed on amount and types of goods and services available for consumption because of limited resources to produce output.
