An Introduction to the Key Issues
Macroeconomics is the study of .
the performance of national economies, and
the policies governments use to try to
improve that performance.
Can be provincial but has to be large.
ECON CHAPTER 3 NOTES AND TERMS DEMAND AND SUPPLY
MARKETS AND PRICES
The place in which you find anything you want to buy is called a market.
A market has two sides; buyers and sellers. There are markets for
goods, services, factors of production (compute
ECON CHAPTER 6 NOTES GOVERNMENT ACTIONS IN MARKETS
A HOUSING MARKET WITH A RENT CEILING
A government regulation that makes it illegal to charge a price higher than a
specified level is called a price ceiling or price gap.
The effect that this has on a mar
ECON CHAPTER 2 NOTES AND TERMS THE ECONOMIC PROBLEM
PRODUCTION POSSIBILITIES AND OPPOURTUNITY COST
The quantity of goods and services that we, as humans, can produce is limited due to the
amount of available resources and technology we can use.
ECON CHAPTER 4 NOTES ELASTICITY
PRICE OF ELASTICITY OF DEMAND
We know that when supply decreases, the equilibrium price rises and the
equilibrium quantity decreases, but we do not know by how much these factors rise
The amount that either factor
ECON CHAPTER 5 NOTES AND TERMS EFFICIENCY AND EQUITY
Resource Allocation Methods
If resources were abundant, and not scarce, we would not need to allocate them
among alternative uses. But since resources are scarce: they must be allocated
somehow. There a
ECON CHAPTER 7 NOTES AND TERMS GLOBAL MARKETS
How Global Markets Work
The goods and services that we buy from other countries are our imports, and the
goods and services that we sell to people in other countries are our exports.
We trade both goods and s
Adam Smith (1723-1790): The Pioneer
Government regulations is not necessary to control the economy
Self-interest (stimulated by motive of profit) Invisible hand Laissez-faire
Thomas Robert Malthus (1766-1834): The Pessimist
Exchange Rates and the Open
Nominal ER: the rate at which two currencies can
be traded for each other.
Can be expressed either as the amount of foreign
currency needed to purchase one CDN dollar, or as
the amount of CDN dollars ne
What happens to AD if A changes for a reason other than a
change in price (ie. G
The only thing we
have changed is
there is a shock
and gov is
levels of spending
go up but price
has not change,.
the demand curve
must have s
Econ Chapter 1 Notes and Terms
As humans, we want more than we can have, and our inability to get everything we want
is referred to as Scarcity.
Scarcity is the problem of having unlimited wants, but limited resources.
Incentives affect the way we make