[ECON 2010] - Final Exam Guide - Comprehensive Notes for the exam (30 pages long!)

• School: CU-Boulder
• Department: Economics
• Course: ECON 2010
• Professor: Zacharyszlendak

Document Summary

Economics is decision making in terms of measurable tradeoffs. Lecture 2 economics behavior, scarcity and decision making. Goods are anything of value including service, air sunshine, and pollution. Markets are any structure where goods can be bought and sold. Equality is how goods are distributed, often conflicts with efficiency. Models reflect the real world and sometimes apply outside of econ. Major tradeoffs= income v leisure, abs v ice cream, safety v privacy, environmental quality v production, efficiency v equality. Opportunity cost is what you must give up/ the 2nd best option. Rational is when individuals act in their best interest but it depends on how much they know. For example, ura(cid:374)iu(cid:373) gi(cid:448)es (cid:373)e super po(cid:449)ers is ratio(cid:374)al (cid:271)e(cid:272)ause i"(cid:373) a(cid:272)ti(cid:374)g i(cid:374) (cid:373)y (cid:271)est i(cid:374)terest even though i have wrong information. Marginal benefit is the value created for society, a reflection of demand. Marginal cost is the consequence society faces, a reflection of supply.