Economics Study Guide - Economics Study Guide Chapter One...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics Study Guide Chapter One Definitions Voluntary exchange (yeah! I’ll volunteer for that to happen to me..) : when both the buyer and seller are made better off by the transaction Allocative efficiency (ll =, reflectttt): a state of the economy where production reflects the consumers’ preferences; when MC=MB. Central planned Economy: an economy in which the government decides how the economy of the country will be run Market Economy: An economy in which the decisions for the economy are made by the interaction of the firms and households Mixed Economy: an economy in which most economic decisions are made by the household and firms, but are somewhat regulated by the government Positive analysis: “what is” Normative analysis: “what ought to be” Marginal analysis: an analysis comparing marginal benefits and costs Trade-off: the idea that in order to produce one more of one thing, less of some other thing will be produced Equity: when there is a fair distribution of economic benefits Macro:
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern