Econ 103 exam 1 - Study guides, Class notes & Summaries

First Principle of Economics - ANSWER-People try to optimize; they try to choose the best available option Second Principle of Economics - ANSWER-Economic systems tend to be in equilibrium, a situation in which nobody would benefit by changing his or her behavior Third Principle of Economics - ANSWER-Empiricism-analysis that uses data. Economicsts use data to test theories and to determine what is causing thhings to happen in the world Scarcity - ANSWER-the situation of having unlimited...

What are the four assumptions of microeconomics? - ANSWER-1. Scarcity 2. Only individuals choose 3. Rational Choice 4. Unlimited wants Is labor a source of value? - ANSWER-No What is the phenomenon of the subjective mind? - ANSWER-Value is in the mind of the valuer Scarcity imposes a margin (T/F) - ANSWER-True What are Mengers requirements to be considered a good? - ANSWER-1. Must be a human need 2. Properties that allow the object to satisfy a need 3. Knowledge of a connection ...

Microeconomics - ANSWER. Macroeconomics - ANSWER-The study of economy world wide phenomena. Opportunity Cost - ANSWER-What is given up to get an item; what is given up to gain/do something. Capitalism - ANSWER-Market system where means of production can be owned privately. Socialism - ANSWER-Market system where means of production are controlled by the government. Communism - ANSWER-Market system where means of production are owned by everyone. Religious System - ANSWER-System ...

Purpose of Economics To make the world more understandable. Explains how the society we live in "hangs together." How hundreds and millions of strangers work together in a society. What is the difference between a positive statement and a normative statement? A positive statement is a statement of a fact. A normative statement is of opinion. Econ focuses on positive statements. Ad hominem fallacy By demand; Committed when someone judges the correctness of the argument based on the person del...

Which of the following is among the reasons identified by Adam smith for why the division of labor increases an economy's total output? a) specialized workers are happier than are non specialized workers b) specialized workers each work on tasks for which they each have a comparative advantage c)specialized workers follow instructions better than do non specialized workers d) specialization of workers is more likely to encourage the development of machinery to perform specialized tasks e) the p...

Which of the following is among the reasons identified by Adam smith for why the division of labor increases an economy's total output? a) specialized workers are happier than are non specialized workers b) specialized workers each work on tasks for which they each have a comparative advantage c)specialized workers follow instructions better than do non specialized workers d) specialization of workers is more likely to encourage the development of machinery to perform specialized tas...

Final Exam Study Guide Mixing of chapters to put things together: A short-run equilibrium (SRE) is an intersection between which curves? AD & SRAS A long-run equilibrium (LRE) is an intersection between which curves? AD & SRAS & LRAS (resources institutions technology) (Classify these points as short run equilibriums, long run equilibriums, recessions, and/or overheated economies and make up unemployment rates for each point) At A the economy is at Recession (U>U=5%) (U=7%) (U=17%) A...

Exam ECON 103 Exam 1 Prep Exam ECON 103 Exam 1 Prep Exam ECON 103 Exam 1 Prep

Exam ECON 103 Exam 1 Prep Exam ECON 103 Exam 1 Prep Exam ECON 103 Exam 1 Prep