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

Econ 201

by: Tashzieanna Minter

Econ 201 Econ 201

Tashzieanna Minter
U of L
GPA 3.0
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 Microeconomics

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Microeconomics 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 notes cover some of the questions that'll be on the exam.
Lynn Usher
Class Notes




Popular in Microeconomics

Popular in Department

This 10 page Class Notes was uploaded by Tashzieanna Minter on Tuesday September 6, 2016. The Class Notes belongs to Econ 201 at University of Louisville taught by Lynn Usher in Fall 2016. Since its upload, it has received 14 views.


Reviews for Econ 201


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: 09/06/16
ECON CHAPTER ONE BY: TASHZIEANNA WHAT IS ECONOMICS? • Definition: The study of human behavior when making choices (by consumers, business and government). • Examples of choice: • Time to a student. • Grades/Social life/Sleep • Produces to business owner • Cost/Quality/Time DEFINITION OF SCARCITY • Desire > Availability • The desire for things is greater than that which is freely available from nature good/services are scare because the resources are scarce. DEFINITION OF RESOURCES • Things that are needed to produce goods and services. • 3 types: • Human: Knowledge, skill, and strength. • Natural: land, mineral deposits, oceans and rivers. • Physical (capital): tools, machines, and buildings. OPPORTUNITY COST • The highest valued benefit/option, that is sacrificed when another option is chosen. • 1st Law of Economics "there is no such thing as a free lunch" means that everything has a cost somewhere. POVERTY IS NOT EQUAL TO SCARCITY • Absence of scarcity • Implies that all of our desires are full. • Absence of poverty • Implies some basic level of need has been met (food, shelter). • Ex: In the 50's wealth = air-conditioning, one television. SCARCITY NECESSITATES RATIONING 3 METHODS • 1) First come first serve – wait in line • Results: encourages individuals to waste time. • 2) Prices used in "market" setting – pay with money • Results: encourages individuals to be productive to generate their own income to buy things. • 3) Collective decision making – government allocates things • Results: rationing through the political process by the government called "socialism". SCARCITY LEADS TO "COMPETITIVE" BEHAVIOR • Individuals pursing their own selfish interest would be directed by the invisible hand of market prices towards the production of those goods that were most advantageous to society. • Adam Smith observed that competitive markets encouraged people to discover, innovation, coordination, efficiency and economics progress. • 1) Firms compete for more customers newer, better, less expensive goods and services. • 2) Firms compete for better employees wages and benefits. PROBLEMS STUDYING ECONOMICS • A) Ceteris Paribus – Latin for "other things constant" and we live a dynamic world (violations lead to wrong conclusions). • B) Association is not causation - statistics association alone can't establish. • C) Fallacy of composition – what is true for the individuals will not always be true for the group. • D) Good intentions do not guarantee desirable outcomes – legislation requires health care. END OF CHAPTER ONE


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

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

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!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

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.