Econ 201 Notes

Economics 201 notes Chapter 1 : First Principles Economics is science of finality qualification individual choice is the basis of economics methodology = cost-benefit analysis If it does not expect choice, it isnt economics. Re denotations (something used to produce something else) include capital like tools and equipment, wreak like natural resources and labor Resources be scarce Opportunity cost atomic number 18 both costs that you must give up to throw it. trade-off is the comparison between the costs and benefits of doing something decision of this character reference is called marginal decision study of them called marginal analysis An economy is efficient if all opportunities to make some people better off without making other people worse off are taken in that location is often a trade-off between equity (fairness) and efficiency crystalize from trade are the returnss of specialization economies normally move toward equilibrium Three basic econ. questions - What to produce? How to produce? For Whom? Three economic system ? all of it perform those 3 basic econ.

questions ? types - traditional, command/planned, market ? most of the country are mixed economies (more than cardinal type) Chapter 2 : Economic Models Trade-offs and Trade An important speculation in economic models is the other things equal assumption (ceteris paribus), which allows analysis of the effect of a change in one component by holding all other relevant factors unchanged. one important economic model is the production possibility barrier (PPF) it illustrates opportunity cost, efficiency and economic growth two basic source of economic growth: increases in factor of production and ameliorate technology. another important model is comparative advantage which psyche can produce some good or service with a lower opportunity cost than everyone else absolute advantage is an ability to produce a particular good or service better than... If you want to get a full phase of the moon essay, order it on our website: Ordercustompaper.com

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