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Unformatted text preview: 1 WSU-TC Study Guide Exam 1 Spring 2011 EconS 102 Chapter 1 Define the following: · Scarcity · Economics · Macroeconomics · Microeconomics · Utility · Good- anything from which indi- viduals receive utility or satisfac- tion · Resources · Land · Labor · Capital- Produced goods that can be used as inputs for further pro- duction, such as factories, ma- chinery, tools, computers and buildings · Entrepreneurship · Opportunity Cost- the most highly valued opportunity or al- ternative forfeited when a choice is made · Ceteris Parabus Chapter 2- Use of PPF to show Opportunity Cost, Growth, Efficiency, Inefficiency, Unem- ployment, Increase in Resources, Loss of Resources, (Page 36 Exhibit 3) Chapter 3- Using S&D graphs to show market reactions to changes in non-price determinants- Using S&D graphs to show effects of price ceilings and price floors · income ( goes up our willingness and ability clearly changes; when in- come goods increase the demand increases [Normal goods] but if our in- come falls the demand shift left [Inferior Good]] ( such as a goods)) · Preferences: based upon cultural, gender based, nationally based, logical...
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