ECON 211- Final Exam Guide - Comprehensive Notes for the exam ( 28 pages long!)
Document Summary
A social science concerned with making optimal choices under conditions of. Basic instincts are generally right in economics. Scarcity and choice--forced to make choices rationally because of scarcity. What you give up to have something else. The comparison between marginal benefit and marginal. Other-things-equal (ceteris paribus) assumption--price goes up demand. Little decisions made by individual units, firms, or industries. Three main data points in macro (indicators)-- unemployment rate (between 4%-6%), inflation rate (prices--2%), economic growth (income) Means equipment or machinery that makes another resource more productive ( i. e. bulldozer, computer) The ability to combine the other resources to make a good. Takes risk or service in the hopes of turning a profit-- a lot of risk. Most efficient point-- all points are equally efficient on the curve. Also works in reverse when resources are depleted-shift in. #1 people fall into-- something true for one person, then must be. Post hoc fallacy--finding a four-leaf clover then winning the lottery.
