ECON 120W- Final Exam Guide - Comprehensive Notes for the exam ( 27 pages long!)
30 Nov 2017
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Oct 6 7:30, nov 10: 7:30, exam: during december exam period. Assignment 20%, midterm 1 15%, midterm 2 25%, final exam 40% Economics: the study of how society manages scares resource. All resource are limited, if a resource is scare or limited, then it involves an opportunity cost. Micro: a study of the decision of individuals, household and how they interact in an economy. Macro: a study of aggregated economics, outcomes such as inflation, unemployment, economics problem. Does (cid:374)ot i(cid:373)ply people"s de(cid:272)isio(cid:374) are always right. People make decision for reason that we can models. If resources are scarce, choices imply foregone alternative, these alternatives are defines as the (cid:862)opportunity cost(cid:863) of a choice (usually the second thing that you want to do). Opportu(cid:374)ity (cid:272)ost (cid:272)a(cid:374) (cid:271)e a(cid:374)ythi(cid:374)g, (cid:373)o(cid:374)ey, ti(cid:373)e, e(cid:373)otio(cid:374) . Accounting profit: tax law around writing off personal items used for work. Economic profit = benefit of choice opportunity cost.
