ECON 224- Midterm Exam Guide - Comprehensive Notes for the exam ( 122 pages long!)

122 Pages

ECON - Economics
Course Code
ECON 224
Elizabeth Breitbach

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[ECON 224] Comprehensive spring guide including any lecture notes, textbook notes and exam guides.find more resources at Exam is open until Sunday at midnight and has a time limit of 75 minutes and 50 multiple choice questions. Module 1: Intro ● Define economics. Explain how economics applies to the real world. Think about scarcity and marginal analysis. ● Define opportunity cost. Identify opportunity cost in various decisions, at the individual, business, and society level. ● Evaluate statements as being positive or normative ● Define macroeconomics and microeconomics. Identify questions which fall under each category. ● Provide a detailed description of the circular flow diagram. ● Compare and contrast command and market systems. ● Explain the Four Fundamental Questions. ● Name the four types of markets. ● Discuss the characteristics of a competitive market, monopoly, monopolistically competitive and oligopoly. Compare and contrast these market structures. Readings: Chapter 1 pp. 3-14 (end at the Production Possibilities Model); Chapter 2 pp. 27-43; Chapter 7 pp. 153-156; Chapter 8 pp. 180-182, 193-195; Chapter 9 pp. 204-206, 210-213. Economics​: about wants and means — the social science concerned with how individuals, institutions and society make choices under conditions of ​scarcity ● Assume that humans are rational and self-interested ● Marginal analysis​: comparisons of marginal benefits and marginal costs ● Marginal = “extra” or “add-on” ● Stop when the marginal benefit is less than the marginal cost Opportunity cost​: to obtain more of one thing, society forgoes the opportunity of getting the next best thing ● That sacrifice is the ​opportunity cost ​of the choice ● On the Module 1 Quiz, one question states: The opportunity cost of a decision will depend on the next best option for each individual. in Positive statement​: when economists state the ​facts ​of the economy Normative statement​: when economists give ​opinions ​about the economy Macroeconomics​: examine either the economy as a whole or its basic subdivisions Microeconomics​: concerned with decision making by individual consumers Command system​: also known as communism or socialism, the government owns most property resources and economic decision-making occurs through a central economic plan ● Ex: North Korea Market system​: also known as capitalism, a market system is characterized by the private ownership of resources and the use of markets and prices to coordinate and direct economic activity ● Participants act in their own self-interest ● Powerful incentive to pioneer and innovate 1 find more resources at
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