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[ECO 105] - Final Exam Guide - Everything you need to know!..
[ECO 105] - Final Exam Guide - Everything you need to know! (30 pages long)

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DePaul University
ECO 105
Bucci Gabriella

[ECO 105] Comprehensive Final Exam guide including any lecture notes, textbook notes and exam guides.find more resources at Economics 105 Micro Chapter 1 Principles of Microeconomics -Normative economic principles says how people should behave  E.G. Gas Prices are too high  Therefore, building a space base on the moon will cost too much -Positive economic principle predicts how people will behave  E.G. the average price of gasoline in May 2010 was higher than in May 2009  Building a space base on the moon will cost more than the shuttle program Decision Making Basics-Rationality -People think of the cost and benefits of doing something over another Decision Making Basics- Scarcity Principle -Scarcity Principle  Unlimited wants and limited resources means…..having more of one thing means having less of another Decision Making  Cost Benefit Principle -take in action if and only if the extra benefits (marginal benefits) of the action are at least as great as the extra costs (marginal costs) -stop when the marginal benefit equals marginal costs -cost and benefits are not just money! Economic Surplus= Net Benefit  Total benefits-total costs=economic surplus  Which =’s net benefits Opportunity Cost -the value of what must be foregone (given up) -explicit and implicit costs Economic Models find more resources at
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