TEST 1 STUDY GUIDEMICRO_2011

TEST 1 STUDY GUIDEMICRO_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 GAINS FROM TRADE-STUDY GUIDE( FROM MY OWN NOTES) UNDERSTAND THE CONCEPT OF: Specialization and why specialization results in more efficient production Division of Labor Trade is a win-win situation-what does this mean? USE CONSTANT OPPORTUNITY COST PPC : TO ANALYZE GAINS FROM TRADE-SEE EXAMPLES IN NOTES( RANCHER VS FARMER) How trade allows us to consume more than what...
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This note was uploaded on 11/16/2011 for the course ECON 102 taught by Professor Soliz during the Spring '11 term at Northern Virginia Community College.

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TEST 1 STUDY GUIDEMICRO_2011 - Understand societys...

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