ECON 1B03 Chapter Notes - Chapter 1: Perfect Number, Market Economy, Opportunity Cost
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12 Oct 2018
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Economics: the study of how society allocates scare resources to satisfy society"s unlimited wants. Microeconomics: focuses on the individual parts of the economy how households and firms make decisions and how they interact with specific markets. Macroeconomics: looks at the economy as a whole economy-wide phenomena, including inflation, unemployment, and economic growth. Firms: produces/sells goods and services. firms hire labourers from households. Household: buys goods and services. they are hired by firms. Market for goods and services: firms sell, households buy. Scarcity: means that society has limited resources and therefore cannot produce all the goods and services people wish to have if something has a price on it, it"s scarce. Resource: anything that can be used to make something else if it can be made, it is a resource: also called factors of production or inputs into production , big 4 resources: labour, land, capital and entrepreneurship.
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Related Questions
21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.