Economics Final Study Guide

Economics Final Study Guide - 8 Standard of Living depends...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics Final Study Guide: Chapter 1- Economics is about the allocation of scarce resources Individuals face trade-offs Opportunity Cost: 1. Whatever must be given up to obtain some item Ten Principles of Economics: 1. People face tradeoffs. 2. The cost of something is what you give up to get it. (Opportunity Cost) 3. Rational people think at the margin. 4. People respond to incentives 5. Trade can make everything better off. 6. Markets are usually a good way to organize 7. Government can sometimes improve market outcomes
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 8. Standard of Living depends 9. Prices rise when the government prints too much money (inflation) 10. The Phillips curve (society faces a short run trade off between inflation and unemployment). Chapter 2-• Microeconomics- Study of the individual • Macroeconomics- Study of the whole. • Positive Statements- What is • Normative- What ought to be • Economist as a scientist o • Economist as a policy advisor o Chapter 3-o...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online