ECON 102- Final Exam Guide - Comprehensive Notes for the exam ( 37 pages long!)
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Ten principles of economics: scarcity the li(cid:373)ited (cid:374)atu(cid:396)e of so(cid:272)iety"s (cid:396)esou(cid:396)(cid:272)es, economics the study of how society manages its scarce resources. 3: society faces a short-run trade-off between inflation and unemployment. 20,000 labor hours available; producing 1 shoe requires 10 labor hours; producing 1 car requires 100 labor hours employment of labor hours production. 2: vc opportunity cost of 1 branch cleaned up is (100/10) 10 miles driven. The economist as policy adviser: positive statements attempt to describe the world as it is (can be proven or disproven, normative statements prescribe how the world should be -> opinion. What shifts the de(cid:373)a(cid:374)d cur(cid:448)e arou(cid:374)d? (cid:894)the (cid:862)other thi(cid:374)gs(cid:863) held co(cid:374)sta(cid:374)t(cid:895) Number of buyers: if the number of buyers increase, demand curve shifts to the right, causes p q , if the number of buyers decreases, demand decreases of shifts to the left, causes p q .
