ECON 101- Final Exam Guide - Comprehensive Notes for the exam ( 34 pages long!)
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ECON 101 Full Course Notes
Verified Note
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Document Summary
Economics is the study of: how society manages its scarce resources, scarcity occurs when available resources cannot meet demand, how people make decisions & interact with each other, forces & trends that affect the economy as a whole. Economist as a scientist: try to explain the world. Addressing subject with scientist objectivity: scientific method: dispassionate development & testing of theories, devise theories, collect data, analyze data to verify/refute theory. Role of assumptions: assumptions can simplify the complex world easy to understand, e. g. effects of international trade: 2 countries produce 2 goods. Circular-flow diagram: visual model of organization of economy (flow of dollars, two decision makers (households & firms, 2 types of market, markets for factors of production, market for goods & services. Production possibilities frontier: t u p n = in tio c u d o r f p s o r o t c a.
