Chapter 1,2 notes

Chapter 1,2 notes - Economics- the study of allocation of...

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Economics- the study of allocation of our limited resources to satisfy our unlimited wants. Resources- inputs used to produce goods and services. Scarcity- exists when human wants(material and nonmaterial) EXCEED available resources. *time is a precious resource. Rational behavior- people do the best they can based on their values and information, under current and future circumstances Macroeconomics- the study of the whole economy…inflation,unemployment, economic growth Correlation-2 evens occur TOGETHER Causation- when one event brings about another event Fallacy of Composition- the incorrect view that what is true for one individual is always true for the group. Positive analysis- impact of variable A on B. testebale statement(hypothesis) Normative analysis- what should be done. What should happen ex: should the govt raise minimum wage? Variable- something is measured by a number Positive relationship- when 2 variables change in the SAME direction (increse or decrease) Negative relationship- 2 variables change in the OPPOSITE direction (increase or decrease)
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This note was uploaded on 11/20/2011 for the course ECON 101 taught by Professor Zhang during the Spring '11 term at SUNY Ulster.

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Chapter 1,2 notes - Economics- the study of allocation of...

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