ECONOM 1015- Midterm Exam Guide - Comprehensive Notes for the exam ( 30 pages long!)
Document Summary
Chapter 2: thinking like an economist 8-25-17 / 8-29-17. ** macroeconomics is the study of economy-wide phenomena. Scientist - explain the world using the scienti c method. Positive statement: attempts to describe the world as it is, can be tested. Normative statement: prescribes how the world should be, value judgement/opinon. A tax cut is needed to stimulate the economy: normative statement (opinion) An increase in the price of burritos will cause an increase in consumer demand for music downloads: positive statement (can be tested) The resources the economy uses to produce goods and services. A combination of 2 goods that the economy can possibly produce. The resources and technology available (could be labor) Inef cient, but possible; you can get more out of one good without sacri cing the other. On the ppf line: ef cient and all resources are fully utilized. What must be given up to obtain that good.
