Mid_1_outline1 - Spring, 2010 Midterm 1 Review 1. Review...

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Spring, 2010 Midterm 1 Review 1. Review gains from voluntary exchange a. Basic model b. Implications 1) 2) 3) 2. What is economics a. Definition b. Ludwig von Mises c. Inexact science 3. Definitions a. Theory b. Resources c. Scarcity d. Economic goods e. Entrepreneur f. Free goods g. Technology h. Institutions i. Capital j. Opportunity cost k. At the margin or marginal analysis l. Property rights m. Fallacy of composition n. Post hoc fallacy o. Private choice p. Public choice q. Positive analysis r. Normative analysis s. Microeconomics t. Macroeconomics u. Institutions v. Barter w. Subjective valuation x. Ceteris paribus 4. Resources and activities cost more than you think a. Include all costs b. explicit c. implicit d. Transaction costs 1
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1) search out 2) negotiate 3) consummate and enforce e. Information f. Time 5. Economic behavior is rational a. Homo economicus b. Self-interest v. selfish c. Self-interest is individual d. Incentives matter . 6. Choices are made at the margin a. What is the margin b. Why is it important c. Compare 7. Prices are signals (information) to producers (what and how to produce) and consumers (the opportunity cost of alternatives a. Goods and services (goods) exchanged to most valued user b. Provide a simple model for conveying information 1) 2) 8. Private choices are different from public choices a. Individual v. group b. Private choices are made voluntarily in the marketplace btn consumers and producers. c. Public choices are made through the political process (with votes or coercion or both). d.
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This note was uploaded on 09/08/2010 for the course ECON 1B at San Jose State University .

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Mid_1_outline1 - Spring, 2010 Midterm 1 Review 1. Review...

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