Macroeconomics Final Review - Macroeconomics Final Review 1...

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Macroeconomics Final Review 08/19/2015 ° 1. What is scarcity and how does it impact our lives?
° 2. Recognize the importance/role of incentives in our lives.
° 3. Be able to determine the role of trade-offs in everyday life. What is opportunity cost?
° 4. Understand what economics is and distinguish the difference between microeconomics and macroeconomics.
° 5. Describe the role of good institutions in an economic environment.
° 6. Understand what “thinking at the margin” means and be able to recognize when/how this way of thinking is (or should be) applied if given examples.
o Determining these depends on the value and on the specific circumstances Thinking at the margin is used when deciding whether or not to use an additional unit of a good o Airplane tickets o Sacks of grain °

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