ECN 204- Final Exam Guide - Comprehensive Notes for the exam ( 32 pages long!)
30 Nov 2017
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Document Summary
Comparative advantage when a country can produce at a lower opportunity cost than another country. In assessing the health and development of an economy macroeconomists focus on: Measures the value of goods/services produced within that country, during a time period. Occurs when a person cannot get a job despite being willing to work. An increase of overall level of prices. Surprise jump inflation reduces the purchasing power of peoples savings. Modern economic growth refers to an increase in output per person as compared with earlier times in which output (but not output per person) increased. Extreme differences in living standards between rich and poor countries is the result of only some countries have experienced modern economic growth. Investment - spending for the producing and accumulation of capital and additions to inventories. Financial investment refers to the purchasing of financial assets (stocks, bonds, mutual funds) or real assets (houses, land, factories) or building such assets in expectation of financial gain.
