ECO 1104 Study Guide - Comprehensive Midterm Guide: Market Economy, Marginal Cost, Marginal Utility
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ECO 1104 Full Course Notes
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Microeconomics: study of how households & firms make decision & how they interact in markets. Studies consequences on these decisions on market outcomes & entire economy. Human wants are limited but resources are also limited. Human wants are partially satisfied by producing & consuming g & s. If (cid:449)e get a(cid:374)(cid:455)thi(cid:374)g (cid:449)e (cid:449)a(cid:374)t, (cid:449)e do(cid:374)"t (cid:374)eed to study microeconomics => we want so much things but scarcity of (cid:396)esou(cid:396)(cid:272)es is (cid:449)hat"s p(cid:396)e(cid:448)e(cid:374)ti(cid:374)g us. Microeconomics is all about price & quantities. Exchange activities interaction btw/ individual consumers & firms theory of markets. 2 main types of economic agents = producers & consumers. These agents interact w/in markets in a capitalist economy. Economy: institution in which these agents produce, consume, & exchange: produces g & s by combining resources (land natural resources, labour human effort, & capital machines, vehicles, equipment) into a technology of production. Scarcity: so(cid:272)iet(cid:455) has li(cid:373)ited (cid:396)esou(cid:396)(cid:272)es . :. (cid:272)a(cid:374)"t p(cid:396)odu(cid:272)e all g& ppl (cid:449)ish to have.