ECON 103 Study Guide - Fall 2018, Comprehensive Midterm Notes - Demand Curve, Marginal Revenue, Compact Cassette
12 Oct 2018
School
Department
Course
Professor
ECON 103
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Thursday September 1, 2016
Chapter 1: The Economic Approach
Scarcity: fundamental concept of economics that indicates that there is less of a good freely available
from nature than people would like.
Choice: act of selecting among alternatives.
Resource: input used to produce economic goods. Land, labor, skills, natural resources, and capital are
examples. Thought-out history, people have struggled to transform available, but limited, resources into
things they would like to have0 economic good.
factors of production: the economic resources needed to produce goods and services
opportunity cost: the value of something that is given up by choosing one alternative over another
Trade off:
Scarcity VS Poverty
Ca’t produe eerythig - > what to produce??
Who gets what ?
Who to produce
Why does Scarcity exist?
• It exists because human wants for goods and services exceed the quantity of goods and services
that can be produced using all available resources.
Why does everyone on earth, including governments, experience scarcity to some extent?
• Governments can not supply citizens with enough goods or services
What will be produced?
• The U.S. lets the produers deide…What if a osuer ats a
automatic transmission? An automaker makes manual and automatic
transmission vehicles to meet the demand of the consumer
find more resources at oneclass.com
find more resources at oneclass.com
How will it be produced?
• For the U.S., workers must be efficient. Are you going to pay 15
orkers durig oe shift at MDoalds? No…- ith ahies…
For whom will it be produced?
• So, how are goods and services distributed? Does the government
hae a role? Yes, trais, plaes, trukig…But people ultiately deide
ased o ho uh oey they hae ad the produer’s goal of profit.
The Factors of Production:
• Land
• Labor
• Capital
• Entrepreneurship
Land
• All natural resources used to produce goods and services
Ex. Forests, minerals, gas, oil, diamonds
Labor
All of the human effort used to produce goods and services
Capital
• Capital: When you think of capital, you
probably think of money. However, capital
is: all of the resources made and used by
people to produce and distribute goods
and services.
Example: Tools, machinery, and factories.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Scarcity: fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like. Land, labor, skills, natural resources, and capital are examples. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources. Why does everyone on earth, including governments, experience scarcity to some extent: governments can not supply citizens with enough goods or services. An automaker makes manual and automatic transmission vehicles to meet the demand of the consumer. How will it be produced: for the u. s. , workers must be efficient. Yes, trai(cid:374)s, pla(cid:374)es, tru(cid:272)ki(cid:374)g but people ulti(cid:373)ately de(cid:272)ide (cid:271)ased o(cid:374) ho(cid:449) (cid:373)u(cid:272)h (cid:373)o(cid:374)ey they ha(cid:448)e a(cid:374)d the produ(cid:272)er"s goal of profit. Land: all natural resources used to produce goods and services. All of the human effort used to produce goods and services. Capital: capital: when you think of capital, you probably think of money.
