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Unformatted text preview: Exam #1: Topics and frequency (in parenthesis) for the exam: All of the questions are drawn from our class lectures. Some of the questions may involve things we discussed in class like the movie clips and the think-pair-share exercises. CHAPTER 1: Adam Smith father of capitalism, rational self-interest = benefits society Micro v. macro micro = learning about each individual part of the puzzle Macro = learning how to tell when the individual pieces are functioning correctly & what can be done to fix any problems Perfection not an option, not favorable, too costly Thinking like an economist (1) no free lunches (cost always exists) (2) Decision makers choose purposefully and rationally (sociological, psychological & economic explanation) (3) At the margin (buying & selling) (4) Considering Secondary Effects (5) Values are subjective (positive v. normative) Normative v. positive economics positive = is the statement true or false (testable) Normative = statement of belief Consumer and producer surplus Consumer surplus = the difference between the amount the actually will pay for a good- Producer Surplus the difference between the amount buyers are required to pay and the cost of production Scarcity time, energy, & money the necessary ingredients in acquiring resources, are...
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This note was uploaded on 03/31/2008 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Fall '08 term at Pennsylvania State University, University Park.
- Fall '08