ECO 2023 Midterm: EXAM 1 REVIEW
Document Summary
Exam 1 review: economic goods vs economic bads. Econ goods/services: product/ service that has (+) value on customers, make 1 better off when consumed. Econ bads: things that have (-) value on customers, make 1 worse off when consumed. Ppl willing to pay for econ goods to avoid econ bads. Utility: measure of preferences/ satisfaction over goods: excludability & rivalry. Excludability: goods is excludable if something (prices, laws, social norms, etc) determines who consume it & who not. + eg: pay -> get, not pay -> not get. + non-excludable: when not pay -> still can get. Rivalry: goods is rival when someone get goods -> less goods available for other ppl. + non-rival: goods still available even after ppl buy it. Chap 2: production possibilities curves & opportunity cost of a goods. Scarcity: unlimited wants > limited available resources.
