[ECON101] - Final Exam Guide - Ultimate 44 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. If benefits (x) > costs (x) do activity x. If benefits (x) < costs (x) do(cid:374)"t do a(cid:272)ti(cid:448)it(cid:455) x. Policy: speed limit edmonton to calgary set to 10 km/h. Costs: travel/time costs, law enforcement, new signs, fuel, greater traffic on other highways, adjustment plans, political costs, costs of other forms of travel. Microeconomics: the study of the choices and actions of individual economic units such as households, firms, consumers, etc. Macroeconomics: the study of the behaviours of the entire economy, including issues like unemployment, inflation, and changes in the level of national income. Positive economics: involves statements about what is and can be tested by checking the statements against observed facts. E(cid:454). (cid:862)if the p(cid:396)i(cid:272)e of (cid:272)offee (cid:396)ises, people (cid:449)ill (cid:271)u(cid:455) less (cid:272)offee. (cid:863)