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Unformatted text preview: Mary Gov HW 1 Ch 1. 1. In unplanned market economies, activities are based on mutual benefits coordinated by prices determined in the market. These prices are determined both by the actions of consumers, which we designate as demand, and by the actions of producers, which we call supply. 4. Science consists of positives statements (statements that are true or false). The scientific method can produce false answers. 5. Propositions that could be wrong but which are confirmed by the facts are the most interesting. 7. No, a theory cannot be good in theory but lousy in practice. By definition a good theory is one that is good in practice. 11. Scarce = not enough to satisfy everyone's wants, must be useful to humans 12. Scarcity leads to competition. 14. Cost of college = the cost of opportunities foregone by going to college e.g. instead of working right out of high school. 17. Food 20. The statement only addresses the concept of opportunity cost. Economics = the study of how scarce resources are allocated amongst competing ends and the study of how people respond to changes in the...
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This note was uploaded on 03/05/2010 for the course ECON 200 taught by Professor Ta during the Spring '07 term at University of Washington.
- Spring '07