ECON 0110- Midterm Exam Guide - Comprehensive Notes for the exam ( 13 pages long!)
Document Summary
Employment act of 1946: its main purpose was to lay the responsibility of economic stability of inflation and unemployment onto the federal government. Peak: the highest value reached by some quantity in a time period, realized when the economy is producing at its maximum allowable output, employment is at or above full employment, and inflationary pressures on prices are evident. Factors or production: land: natural resources, labor, capital: tools, equipment, factories, etc, entrepreneurship: risk taking by and leadership of the business owners. Based on making choices that result in the most optimal level of benefit or utility for the individual. Most conventional economic theories are created and used under the assumption all individuals taking part in an action/activity are behaving rationally. Statements or theories about how the economy works: theories about how we think the world works. Value judgments about what is good or bad: opinions about what we ought to do, what we should do.
