ECON 2- Midterm Exam Guide - Comprehensive Notes for the exam ( 57 pages long!)
Document Summary
Lec 1, 2 - measuring a nation"s income (chapter 23) Midterm 1 - 25% chapter 23-26 on feb. 1. Midterm 2 - 25% chapter 27-30 on mar. Final - 50% cumulative on wed. , mar. Does gdp measure society"s well-being: introduction: micro vs. macro. Microeconomics: the study of how individual households & firms make decisions, interact with one another in markets. Macroeconomics: the study of the economy as a whole. Gross domestic product (gdp): measures total income of everyone in the economy. Also measures total expenditure on the economy"s output of goods & services for the economy (as a whole), income equals expenditure. Because: every dollar a buyer spends = dollar of income for the seller. Gdp = the market value of all final goods & services produced within a country in a given period of time. Goods are valued at their market prices so:
