ECON 1000 Study Guide - Final Guide: Ceteris Paribus, Max Q, Indifference Curve
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ECON 1000 Full Course Notes
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Document Summary
Deflation worse than inflation (ppl buy less, cut backs, slow economy) History = isolate historically unique features of our economic system. Theory (roadmap) = focuses on core issues, not all. Measurement = test how well theory explains, helps understand reality. Policy = economic policy tries to change world, not just interpret it. Positive statements = can be true/false, capable of testing facts. Normative statements = depends on values, can(cid:495)t test facts. Production = organize economic system with sufficient production for survival (ppl need basic needs) Reproduction = economies & inputs need to continue every year. Tradition = task organized by heredity, produce distributed by tradition (passed through generations) Command = 1 leader in power (slavery, command) By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. Factors of production, goods, services flow in 1d. Economics = how individual decisions allocate scarce resources with unlimited wants.
