CAS EC 102 Study Guide - Quiz Guide: Gdp Deflator, Seat Belt, Profit Margin

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Jay Zagorsky

Document Summary

An example of a negative incentive is flunking all students who get less than 1/4 of the questions right. A key difference between macroeconomics and microeconomics is micro examines one individual"s actions while macro examines the group. In a zero sum game, winners get their winnings from losers. A mexico city attempt to ban cars from driving based on their ending license plate number was a negative incentive that did not work. Money is a signal of quantity is not a reason why money is important in macroeconomics. If the news reports that country"s economic output of goods and services has fallen by 3% over the past year then an economist would say this is a positive statement. The key economic difference between a capitalist system and a socialist system is in a socialist system, the government owns the key businesses while individuals own smaller less important businesses; in a capitalist system, individuals own almost all businesses.