New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

ECO 103 - Chapter 1 Notes

by: Shannon Surell

ECO 103 - Chapter 1 Notes Eco 103

Marketplace > Illinois State University > Economcs > Eco 103 > ECO 103 Chapter 1 Notes
Shannon Surell
GPA 3.81
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Individuals and Social Choice

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Individuals and Social Choice notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

These are the in-class notes from Chapter 1! Use these to help you on the online homework and quiz! Anything highlighted in yellow is vocabulary!
Individuals and Social Choice
Amir Marmarchi
Class Notes
ECO 103, Economics, Chapter 1




Popular in Individuals and Social Choice

Popular in Economcs

This 3 page Class Notes was uploaded by Shannon Surell on Saturday January 30, 2016. The Class Notes belongs to Eco 103 at Illinois State University taught by Amir Marmarchi in Spring 2016. Since its upload, it has received 114 views. For similar materials see Individuals and Social Choice in Economcs at Illinois State University.


Reviews for ECO 103 - Chapter 1 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/30/16
ECO 103 – Amir Marmarchi Tuesday, January 12 ­ Introduction Meta knowledge: our knowledge/ perception about the knowledge of others Hard easy effect: harder the task gets, the more overconfident our judgements become Silent evidence: ways that were tried and were not successful or significant Types of Errors Type 1: believing in existence of an effect or relationship that doesn’t exist (false positive) Type 2: Non­believing in existence of an effect or relationship that does exist (false negative) Type 3: Asking the wrong question Type 4: Wrong interpretation of a correct conclusion (ex. Wrong prescription after correct  diagnosis) Error of “commission” vs. error of “omission” Thursday, January 14 – Chapter 1 Economics: study of how society chooses to manage its scarce resources to satisfy its wants Economy: type of organization that produces goods and services and then allocates those  goods/services to its members ­ An economy can be as small households or as large as USA ­ Derives from the Greek word oikonomia  “household management” ­ Distributive (market) system typically works better ­ Command and control does not work as well (central control) o Ex) North Korea 2 Key Questions 1) What are we going to make with our resources?    Answer these simultaneously! 2) How do we decide who gets to enjoy it? Scarcity: we don’t have the resources necessary to fulfill all of our wants ­ We assume our wants are endless, but our means to satisfy them are not Tradeoffs: when we have to make choices about which desires to satisfy and which to leave  unfilled Tradeoffs = opportunity cost Opportunity cost: what must be sacrificed to obtain something ­ Applies to individuals and other levels of society ­ NOT ABOUT MONEY because… o Money is a contrivance invented to help facilitate exchange o Not all opportunities are easily measured in dollars Explicit Cost: costs that are measured in dollars ­ Typically involve exchange of money Implicit Cost: cost that doesn’t involve money ­ Can be difficult to measure ­ Hard to account for them because they are opportunities that never materialize Public policy: collection of laws, regulatory measures, and actions concerning a particular topic  that originate with some body of government ­ Saves some, doesn’t save others Government Actions ­ Aren’t always the best way to solve our problems o Could make things worse ­ A government that tries to solve problems that the people can solve themselves is a waste of resources Tuesday, January 19 Incentives: inducements to act a certain way ­ Can encourage/discourage particular behavior ­ Can appear in form of cost ­ They work by changing the trade­offs individuals face o Can convince people to act a certain way o Price  signal of scarcity o Price signifies information about product in today’s world and into the future o Ex) government gives a tax credit if you by a fuel­efficient car Altruism: to care about others more than yourself To decrease crime: ­ Investment in surveillance/increase cops ­ Increase punishment Collective action problem: when naturally occurring incentives encourage sufficient numbers of  people to act in a way that makes everybody worse off ­ Individuals tradeoffs are different than social incentives ­ No individual has any incentive to act in the best interest of the group ­ Individuals may be powerless to solve problems by themselves ­ Government actions may be required ­ Ex) when one person stands at a concert, then everyone stands Positive economics: description of current state ­ Can be proved/disproved  ­ helps avoid making judgements about what is “fair” ­ typically what economists use Normative economics: an opinion of what a state should be ­ Can be neither proved/disproved


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.