[ECON 200] - Final Exam Guide - Comprehensive Notes for the exam (58 pages long!)
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ECON 200 Full Course Notes
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Econ 200 i lecture 2 ten principles of economics. Economics is based on the fundamental statement that resources are scarce: scarcity: society has limited resources and therefore cannot fulfill all human wants and needs. The goods must be desirable: limited: an objective finite supply. The goods can be desirable of undesirable: basically, scarce is limited and desirable. Economics is the study of how society manages its scarce resources: ex. How people make decisions - micro: people face trade-offs. To get one thing, you must give up another: ex. How you spend your time studying: ex. How a family decides to spend its income: ex. How the us government spends tax dollars: ex. How regulations may protect the environment at a cost to firm"s owners. Efficiency vs. equality: efficiency: society gets maximum benefits from scarce resources (size of economic pie, equality: prosperity is distributed uniformly among society members (how economic pie is sliced)
