ECO 201 Exam I Study Guide

ECO 201 Exam I Study Guide - Econ 201- Study Guide Chapter...

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Econ 201- Study Guide Chapter 1 Scarcity - the wants of people cannot be fully satisfied Resources - things used to produce goods and services People and labor ( L ) Kapital ( K )- anything used to produce a good or service that has already been produced Land ( L )- anything given by nature (dirt, coal, rivers, etc) Human Kapital- skills are “produced” and put to use Land Kapital- improved land, already processed and made better Economic Society - must decide what to produce , for who, and how ? Institutions - ways society can be organized Traditional- what your family produced; persists over time Central planning- produce g & s to satisfy wants (need info, incentives---use prices to convey this information) Opportunity cost - whatever must be given up to obtain some item (6, 25) Marginal changes - small incremental changes adjustments to a plan of action (6) Market economy - an economy that allocates resources through the decentralized decisions of many firms and households they interact in markets for goods and services (9). Market power
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This document was uploaded on 11/02/2011 for the course ECO 201 at Miami University.

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ECO 201 Exam I Study Guide - Econ 201- Study Guide Chapter...

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