ECON 2030 : Econ 2030 Test 1 Review
Document Summary
Economics: study of how society materializes with the material means of existents. Goods and services are exchanged in return for money. Consumers/buyers: buying the goods or services. (has the money) Seller: one with the goods/services. (wanting the money) Macroeconomics: large portions of the economy (all goods and services in one category) Positive: something that can be tested and proven right or wrong. Demand: the ability and willingness to purchase a good or service at various prices. Quantity demand: the specific amount of good or service willing to be purchased at a specific price. Hungary can produce more of the good per worker hour than romania can. Hungary has a higher opportunity cost of producing the good than does romania. Rational: benefit is greater than or equal to the cost. Substitution: this or that, the price of one increases, the demand for the other will increase.
