TEST 1_STUDY GUIDE_MACRO-2011

TEST 1_STUDY GUIDE_MACRO-2011 - Understand societys...

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Chapter 1 (Part 1) Study Guide Understand the  meaning of : economics The 3 economic  perspectives: 1. Scarcity Ł choice  Ł opportunity cost 2. Purposeful behavior 3. Marginal analysis . Utility . Microeconomics . Macroeconomics . scientific method economic resources or  factors of production: land Labor capital entrepreneurial ability 1-1
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Chapter 2 Study Guide economic system command system market system market “invisible hand” circular flow diagram resource market product market 2-2
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CHAPTER 1( Part 2):BUDGET  LINE AND PPC CHAPTER  STUDY GUIDE Understand the individual’s economizing problem  Know the definition of budget line  Able to interpret points on, inside and outside the  budget line How a change in income affects the budget line.
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Unformatted text preview: Understand societys economizing problem What is a PPC? Know how to interpret points on, inside and outside the PPC Understand and use the PPC to show: The concept and the law of increasing opportunity cost CHAPTER 3 STUDY GUIDE Demand law of demand demand curve determinants of demand normal goods inferior goods substitute good complementary good change in demand change in quantity demanded Supply law of supply supply curve determinants of supply change in supply change in quantity supplied equilibrium price equilibrium quantity Surplus shortage Changes in demand and 3-4...
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TEST 1_STUDY GUIDE_MACRO-2011 - Understand societys...

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