ECON 2A- Final Exam Guide - Comprehensive Notes for the exam ( 53 pages long!)
30 Nov 2017
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Economics is the study of how societies choose to use the scarce resources. Law of society not enough resources to completely satisfy human needs/wants. Mirco-economics - family decision making, firm decision making, single market decision making. Macro-economics - as a whole in aggregate broad measures. 2. mechanisms: market mechanism, government, many what and how decisions are made by firms responding to prices, roads firefighting income assistance etc. Micro outline: how households and firms make economic decisions. Look at how a competitive market works: what changes if there is insufficient competition, how the labor market works, when is the market efficient and when is it not. If not, what is the best form of government to achieve efficiency a. Is when two people agree about the facts but disagree about what should be done. Limits of economics: we will never eliminate normative disagreement. Is a statement about the facts of a prediction.
