ECON 1010 Study Guide - Final Guide: Marginal Cost, Marginal Utility, Opportunity Cost
9 Jan 2019
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Define economics: economics is the social science that studies the choices that individuals, business, governments and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Factor services in creating goods/services: labour, land, capital, entrepreneurship. Explain the key ideas that define the economic way of thinking: trade-offs, rational choice, opportunity costs, marginality (incremental changes); benefits and costs, positive and normative statements. Explain how economists go about their work as social scientists and policy advisers. Define the ppf and use it to calculate opportunity cost: zones on the curve: Inside the curve = inefficient allocation of current resources. Outside the curve = unattainable with current resources. On the curve = maximum efficiency with current resources: things to do on a ppf: Equilibrium between mc and mb: economic growth. Technological change = development of new goods and better way of producing goods/services; specialization (example: smoothies and salad)
