Study Guides (400,000)
US (230,000)
GCC (10)
ECON (3)
Study Guide

ECON 102 Study Guide - Fall 2018, Comprehensive Midterm Notes - Inflation, Labour Economics, Interest Rate


Department
Economics
Course Code
ECON 102
Professor
David Kashifian
Study Guide
Midterm

This preview shows pages 1-3. to view the full 43 pages of the document.
ECON 102
MIDTERM EXAM
STUDY GUIDE
Fall 2018

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

ECON 102
David K.
Chapter 1
Four Concepts of Econ
1. Trade Offs: if you do one you can’t do the other; don’t tell you what to do just
give you a set of choices
(classic economic tradeoff)
Set of choices:
Work vs School Guns vs Butter

Military Domestic
Sometimes trade offs exist that you don’t even know about
Efficiency vs Equity

Getting the most out of something Fairness
with the least effort
For ex: taxes, minimum wage
Scarcity
Economics: study of how to efficiently distribute scarce resources
Unanticipated trade offs: ex is Ralph Meter, made government federally mandate
seat belts and it resulted in more car accidents/deaths
2. Opportunity Cost: a number or thing, quantifiable, what you give up to get
something else.
ex: retirement vs spend it now
3. Marginal Analysis
Margin→ incramented steps
Marginal analysis→ thinking in baby steps
Different from fixed cost because regardless of if you have 1 employee or 12,
rent is the same
Marginal Benefit: Marginal Cost:
additional benefit gained by additional cost gained by
increasing by 1 unit increasing by 1 unit
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Marginal Benefit > Marginal Cost DO IT
Marginal Cost > Marginal Benefit DONT DO IT
Marginal Benefit = Marginal Cost STOP, DO IT BUT NO LOWER
4. Incentives: reason for you to do something
Can be positive and negative
Backbone of econ
5. Government Role
*ENFORCE PROPERTY RIGHTS AND UPHOLDS RULE OF LAW
Everything else is a by product
Fundamental economist Adam Smith “act in self interest and the other person is
better off” is the most efficient way
6. Market: a place where buyers and sellers meet
-When you facilitate an exchange you have valued what you bought more than
what you’ve paid (vice cersa)
-We all become better off by acting in our best interest
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version