ECON 1116- Midterm Exam Guide - Comprehensive Notes for the exam ( 30 pages long!)
11 Oct 2017
School
Department
Course
Professor
Document Summary
Optimal decisions are made at the margin. 2- the economic problem that society must solve. Describe the role of models in economic analysis. 6- using graphs and formulas to analyze economic situations. We must make choices because we live in a world of scarcity. Scarcity: situation in which unlimited wants exceed the limited resources available to fulfill those wants. Economics: the study of the choices people make to attain their goals, given their scarce resources. Economics models: a simplified version of reality used to analyze real-world economic situations: three key economic ideas. Market: group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade. Most of economics involves analyzing how people make choices and interact in markets. Here are three important ideas about markets: people are rational. Consumers and firms use all available information as they act to achieve their goals.
