Study Guides (299,522)
CA (140,978)
UTSG (9,792)
ECO (742)
ECO100Y1 (112)
Study Guide

[ECO100Y1] - Midterm Exam Guide - Ultimate 14 pages long Study Guide!Premium

14 pages292 viewsFall 2016

Department
Economics
Course Code
ECO100Y1
Professor
James Pesando
Study Guide
Midterm

This preview shows pages 1-3. to view the full 14 pages of the document.
UTSG
ECO100Y1
MIDTERM EXAM
STUDY GUIDE
You're Reading a Preview

Unlock to view full version

Subscribers Only

Only page 1 are available for preview. Some parts have been intentionally blurred.

Subscribers Only
You're Reading a Preview

Unlock to view full version

Subscribers Only

Only page 1 are available for preview. Some parts have been intentionally blurred.

Subscribers Only
RSM100H1IntroductiontoManagementLecture1AdamSmith’sCapitalism
Professor:JohnOesch
AdamSmith:
● PublishedWealthofNations(
1776),consideredtheintellectualfatherofCapitalism.
WealthofNations
isafoundationdocumentfor:
■ Freeenterprise
■ Freetrade
■ WealthCreation
■ Economics
● Definitions
○ Capitalism,simplified:Away(thoughnottheonlyway)foragroupofpeopleto
becomewealthier.
○ Capitalism(fulldefinition):alegalsystem/framework(notanideology)that
safeguardsprivatepropertyandpermitsfreetradeincompetitivemarkets;
productionandconsumptionarenotcontrolled.
■ Providesfreedomofchoicehowmuchtobuy,howmuchtoproduce
■ Manydevelopednationshavedifferentversionsofcapitalism
■ Isan“idealtype”:assumingparticipantsfollowasetdesignexactly,as
prescribed
■ Isaframework,asuggestion
Money
○ “Firstasameasureofvalueandthenasthemediumofpermutationor
exchange.”
○ Consideredastandardizedwaytorepresentvalue
○ I.e.Tradingextraeggsforfirewoodisadirecttransaction,butisunreliableand
complicatedduetosubjectivevalueonitems,aswellaschangingdemand.
■ Therefore,moneymoneycanbeusedasanagreed,standardized
representationofvaluetobridgethetransaction
● Price
○ “Oftherealandnominalpriceofcommodities,oroftheirpriceinlabour,andtheir
priceinmoney”
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Subscribers Only

Only page 1 are available for preview. Some parts have been intentionally blurred.

Subscribers Only
○ Paraphrasedmeaning:Therealprice(costofitemtoconsumer)isthe“toiland
trouble”ofacquiringit
■ I.e.acquiringfirewoodforfireplace:Thepriceoffirewoodisnottheactual
wood,buttheeffortandprocessrequiredingettingit.
● Ifofferedservicefordeliveryoffirewood,i.e.$800,costsan
amountthatis“lessthan”twodays(theamountoftimetakenfor
youtogetityourself)of“toilandtrouble”,promptingyoutopayfor
it,thenthepriceoffirewoodis$800
● ComponentsofPrice
○ Thecomponentpartsofpriceincludes:
■ Anaturalprice
● I.e.Thepriceofcornincludes:
○ Rentforlandlord
○ Labour
○ Maintaining/caringforlivestock
■ Aprofit
● Anamountgainedbytheindividualsellingacommodity
● Amountexceedingthenaturalprice
● A“margin”
● MarketPrice
○ Isthepriceofacommodityinagivenmarket
■ I.e.amorselofcornissoldat$1.00,thusthemarketpriceofsaidcornis
$1.00.Notethatanotherfarmersellingat$0.95wouldbecreatinga
separatemarket.
○ Itisasetofagreementsmadebyhumans
○ Notefficient,fickle
● WagesofLabour(labourunions)
○ Relationshipbetweenworkerandemployerdependentonanagreedcontract
betweenthetwoparties
■ Wagesaremarketdetermined
■ Notethattheinterestoflabourerisindirectoppositiontothatofthe
“landlord”
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Subscribers Only

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.