Econ 1200 Week of 1/11 Notes
Econ 1200 Week of 1/11 Notes 1200
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This 3 page Class Notes was uploaded by Kaitlin Myers on Wednesday January 13, 2016. The Class Notes belongs to 1200 at University of Toledo taught by Andrew D. Blazsik in Fall 2016. Since its upload, it has received 63 views. For similar materials see Principles Of Microeconomics in Economcs at University of Toledo.
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Date Created: 01/13/16
Econ 1200 Week of 1/11 Notes Terms: Economics: Social science that studies the choices that individuals, businesses and governments make as they cope with scarcity. Micro: Small decisions on how businesses are influences by the government. Macro: Study of the economy on a large scale. (Country, world) Scarcity: Condition that arises because wants exceeds the ability of resources to satisfy them. The inability to satisfy all our wants. Goods and Services: the objects and actions that people value and produce to satisfy human wants. Tradeoff: Giving up one thing for another. Opportunity Costs: The best thing you must give up to get something else. Margin: Choice made by comparing all relevant alternatives. The last item sold, or one specific unit. Marginal Costs: The opportunity cost of one single unit. Marginal Benefit: The benefit of a oneunit increase in an activity. Slope: y/x = rate of change. Ch. 2 1. Consumption of goods and services a. Everything we purchase in the market 2. Capital Goods 3. Factors of production a . Land, labor, capital Ch.3 1. Production Possibilities a. A limit on what can be produced b. c. The blue line is called the Production Possibility Frontier: a boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced. i. Points B, D, and C are all attainable because they are on the blue line. ii. Point A is not an efficient point, but it is attainable. iii. Point X is not attainable due to limited resources/scarcity. d. Opportunity cost formula: What you’re giving up/what you’re getting e. To attain something that is not attainable, increase capital and labor. f. Comparative advantage: If it is easier to produce more of one product to trade with another country for another product that they are giving up. g. i. If you jump from Point X to Point A, that is called a Free Lunch: anytime you get something without giving up something else. h. Absolute Advantage: Whoever is better at producing the product will do it.
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