mi Chapter 1-incarian - Cost Opportunity in ceron - marginal means Extra dhrou - Huge problem = there are unlimited wants umonot but w proton wiriosb bosilotos limited resources e what is good 2 ing for one, isn't People try to use "Sound Economic Reasoning" - it's pitfalls? • Biases ett to troca d isg it nes xxne Loaded terminology Ewe 2mg • Fallacy of Composition sino Post HocDon't forget about the age old question of adena calden umass
We also discuss several other topics like morphemes are the smallest distinctive sound units in a language.
If you want to learn more check out mktg 3401 class notes
If you want to learn more check out mgmr-120
If you want to learn more check out exists when a country is the most efficient producer of an item
If you want to learn more check out ensures that skeletal muscles carry out smooth coordinated movements
Fallacy to e - just because event A happens before event Bo event a didn't cause "b" • Correlation not causation E good for everyone Chapter 2 - The Market system & Circular Flows qov Economic Susterms loivaills olen Ko to coordinate the economy i o they differ by the degree Laissez faine Capitolism the ideal economy" as a no - everything is market driven hoop - Govo only there for protection of theft ont and as an environment for contracts (law) Chotovitoo evitonaserorandrue ult mi I Command System (AKA communism) . Govo makes decisions tood -Ex. North Korea, Cuba, Myrammar All pertains to market Esenemy The Market Economy Mix of decentralized decision making with some gov. control • mostly private ownership of resources • Consumers/suppirers act in self interest behavior * Found in most of the world, ** Characteristics of Market System ** •Private property, Freedom of enterprise, freedom of choice, self interest, competition, market driven prices o Technology o Capitol qoods considered good • Specializations (positive) - - Division of laber olan - Geographic specialization •Using money to exchange rather than bartering + An active bot limited govo helps allieviate market failures - increases effectiveness of market system o- possible gov failune There are 5 essential Questions oor 1. What goods will be produced ? (Dollar votes -AkA what people actually buy-decides) 2. How are the goods produced? (Always produced using last cest method) 3. Who will boy the goods? (Those people both willing & able-financially able) 4. How will the system change ? (changes in taste/ preferences technology, $esources 5. How will the system progress? (Creative destruction)