ECON 002- Midterm Exam Guide - Comprehensive Notes for the exam ( 14 pages long!)
13 Oct 2017
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Document Summary
Positive economics: the scientific study of what is (testable) Normative economics: judgments about what people think ought to be (not testable) Microeconomics: focuses on how human behavior affects the conduct of affairs within individually defined units such as households or firms (the trees) Macroeconomics: focuses on how human behavior affects outcomes in highly aggregated markets such as the nations market for labor (the forest) The process by which some people become rich will make everybody richer as long as it happens through voluntary exchange. Private property rights involve: the right to exclusive use of the property, legal protection against invasion from other individuals, the right to sell, transfer, exchange, or mortgage the property. Lack of property rights= lack of economic progress. Ppc: outlines all possible combinations of total output that could be produced, assuming a: fixed amount of productive resources, given amount of technical knowledge, full and efficient use of resources.
