[ECON101] - Midterm Exam Guide - Ultimate 22 pages long Study Guide!

• School: University of Alberta
• Department: Economics
• Course: ECON101
• Professor: Gordon Lee

Document Summary

Economics: the study of the choices people make and the actions they take in order to make the best use of scarce resources in meeting their wants and needs. Scarcity - you can"t have everything you want. If bene ts (x) > costs (x), then do activity x. If costs (x) > bene ts (x), then don"t do activity x. Set the speed limit on the highway from edmonton to calgary at 10km/h. Costs (cid:12254) (cid:12254) (cid:12254) (cid:12254) (cid:12254) (cid:12254) (cid:12254) The study of choices and actions of individual economic units such as households, rms, consumers, etc. The study of the behaviour of the entire economy, including issues like unemployment, in ation, and changes in the level of national income. Allocation of resources can be evaluated on the basis of: (cid:12254) Allocative e ciency is present when society"s resources are so organized that the present value of net bene ts are maximized (cid:12254)