Economics 1021A/B Study Guide - Fall 2018, Comprehensive Midterm Notes - Economic Equilibrium, Opportunity Cost, Inferior Good

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Jeannie Ann Shearer

Document Summary

We always want more than is available to us. Not enough resources to feed our desires. S(cid:272)ar(cid:272)it(cid:455) = is(cid:374)"t e(cid:374)ough for e(cid:448)er(cid:455)(cid:271)od(cid:455) a(cid:374)d (cid:449)e are therefore for(cid:272)ed to (cid:373)ake (cid:272)hoi(cid:272)es (cid:894)e(cid:454). If we want to buy nice shoes, we have to stop eating out (monetary example), if i want more leisure hours i have to work less (time example)) Scarcity applies to everyone no matter their financial status. Scarcity not enough time or money for everything. Sometimes these choices scarcity forces us to make is influenced by the government (ex. Government creating incentives (can be either a reward or a penalty!!!) Penalty is like taxes (if you want to drive and pay for gas you will have to pay tax) If you want to smoke, the(cid:455)"ll ta(cid:454) (cid:455)ou. When prices rise people will be less likely to do them. So now through subsidized tuitio(cid:374) fees it (cid:373)akes (cid:449)hat (cid:449)as(cid:374)"t (cid:449)orth(cid:449)hile to them before is now worth it)