Economics is the study of scarcity
Opportunity cost- value of the next best alternative given up
For every choice, there is an opportunity cost
The higher the opportunity cost of doing something, the less likely it will be
Study guide: Final Exam
What is economics?
What is scarcity?
What are the factors of production and their rewards?
What is opportunity cost?
What is Production Possibilities Frontier?
Which points are at
Study guide for Exam 3
1. What is the relationship between consumption and income?
a. When disposable income changes, consumption changes by less
b. Consumption and income have a positive relationship.
2. What is MPC?
a. Marginal Propensity to Consume
Study guide: Exam 2
1. What is a business cycle?
a. The rise and fall of economic activity.
2. What are the various phases of business cycle?
a. Peak- The peak of business cycle. RGDP is at a temporary high
b. Recession- When RGDP is declining
ECON202 (Microeconomics) Exam 1 (Chapters 1, 2, and
4) Review/Study Guide
Exam 1 will cover material from Chapters 1, 2, and 4. The following study guide lists the concepts to
focus on for each chapter.
Define economics, microeconomics, and macr