ECON 101- Final Exam Guide - Comprehensive Notes for the exam ( 59 pages long!)

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: wokiakumase

Document Summary

The social science that studies the choices that individuals, business, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Scarcity- our inability to get everything we want. Incentive a reward that encourages an action or a penalty that discourages an action: e. g. price, opportunity cost measured by the next best alternative forgone. Land includes natural resources e. g. minerals, oil, gas. Fairness in income, wealth, opportunity to work, etc. In a market, for every winner there is a loser. Big corporations are the winners, workers and unemployed people are the losers. Things you can"t afford to buy (explicit costs) And can not be tested: positive statements, statements attempt to explain how an economic system works or to predict what will happen, what has/is/will, positive statements can be statistically evaluated. Economist as policy adviser: toolkit for advising governments and making personal decisions.