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Unformatted text preview: ECON 14:24 Assumptions Economies Freemarkets (Singapore- works well there) (Somalia-doesnt work.) Productive efficiency- occurs when the economy is utilizing all of its resources, and operating at its production possibility frontier. This takes place when production of one good is achieved at the lowest cost possible, given the production of the other good(s). Positive analysis- can be solved with economics. Normative analysis- asking how things should be.. Ideas of fairness. Questions that cant be answered any reasonable way. Economics Is a social science. Total revenue= Price x Quantity Sold Profit= Revenue-Cost Profit is all that matters. Technology- economists take a broader view of technology. Improvements in management and workers and also any newer computers or electronics. This is thought of this way because the thought is that you can produce more goods or services for the same cost. Or produce the same amount for less resources. services for the same cost....
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This note was uploaded on 01/28/2011 for the course ACCT 2001 taught by Professor Lowe during the Spring '08 term at LSU.
- Spring '08