EC120 Chapter Notes - Chapter 1: Business Cycle, Omnipotence, Invisible Hand
22 views4 pages
carminegrasshopper545 and 38337 others unlocked
30
EC120 Full Course Notes
Verified Note
30 documents
Document Summary
Economy comes from the greek work oikonomos meaning the one who manages a household. A society must make decisions on job distributions, as well as resources. Economics- study of how society manages the resources. Economists study how people make decisions, and they interact with each other, cost inflations cause by buyers & sellers, analyze forces and trends affecting economy. Behaviour of an economy reflects the behaviour of the individuals who make up the economy. Eg) students and time studying or work or leisure, family income- vacation or studies. A classic trade-off guns & butters protecting population vs. consumer goods to raise standard of living. Trade-off in society is between efficiency and equality. Efficiency society getting the most it can from its scarce resources. Equality- distribution of resources equally amongst members of the society. Eg) efficiency is the size of a pie, and equality is how the pie is split. Government policies typically have conflicts between these two goals.
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers
Related Documents
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.