E160 Topical Review

E160 Topical Review - ECON 160.Spring 2008 Topical Review for First Midterm(Chapters 1 4 The following is a review of the topics we have covered

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ECON 160.Spring 2008: Topical Review for First Midterm (Chapters 1 – 4) The following is a review of the topics we have covered and should serve as a review tool. The list may not be definitive. 1. Introduction to Economic Theory Defined Economics: a science that describes individuals behavior in a world of scarcity Defined Positive-what is or what will be (objective, factual, testable, descriptive) vs. Normative Analysis- what should or ought to be (subjective, value judgment, opinion) Derived the Elements in the construction of Theory- abstraction, definitions, assumptions, implications, adoption of theory Defined Marginal Analysis: the study small changes associated with one additional unit 2. Basis of Economics Defined Goods- anything an individual wants to have more of at zero price , Scarce- a good is scarce when the amount wanted (at 0 price) is greater than the amount available (at 0 price) (Economic) Goods, Free Goods, Resources-anything that can be used to produce a good (land labor and capital) (Categories of) Defined Basic assumptions of Scarcity- humans will never be satisfied because of unlimited wants. There aren’t enough resources to produce all the things we wnat Derived Implications of Scarcity [Choice- if you choose one thing then you cannot choose another , Cost- cost of what you are giving up , Competition- you are always in completion with someone else…it cannot be eliminated ] Defined Economic (Opportunity) Cost- the personal value of the highest next alternative given-up or forsaken. Derived the Forms of Competition-
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This note was uploaded on 04/15/2008 for the course COMP 100 taught by Professor Cook during the Spring '08 term at CSU Northridge.

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E160 Topical Review - ECON 160.Spring 2008 Topical Review for First Midterm(Chapters 1 4 The following is a review of the topics we have covered

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