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This 2 page Class Notes was uploaded by Miss Sigurd Dicki on Wednesday September 23, 2015. The Class Notes belongs to ECON201 at Drexel University taught by YotoYotov in Fall. Since its upload, it has received 14 views. For similar materials see /class/212542/econ201-drexel-university in Economcs at Drexel University.
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Date Created: 09/23/15
ECON 201 April 2 2009 Drexel University Yoto V YotOV Class Outline amp De nitions Lecture 2 Logic and Methods of Economics Main Economic Problems and How The Market System Can Solve Them 0 Organizational Issues and Questions 0 Review amp Catching Up 0 The Scienti c Method in Economics 7 Observation Assumption 7 Modeling 7 Prediction 7 Testing 0 Three Common Fallacies The fallacy of composition 7 The 7 post hoc 7 fallacy The ceteris paribus 7 assumption 0 The Three Major Economic Problems 7 What and How Much to produce 7 How to produce 7 For Whom to produce 0 Command Economy vs Market Economy A Command Economy is one where the government makes all the important decisions about production and distribution 1 Government owns the resources and the means of production and it determines who will consume the outputs of production A Market Economy is one where economic decisions are made by indiuiduals and rms Individuals and rms and the interactions between them determine What How and For Whom will be produced 0 The Market System Major Components 7 Money A barter system is a market system in which goods or seruices are traded directly for other goods or seruices Specialization Trade 7 Capital 0 Market Price and Market Equilibrium Market is a mechanism which brings buyers and sellers together The price in a market system is the exchange value of the goods and seruices in terms of money Market Equilibrium is de ned as the balance between all the buyers the demand and all the sellers the supply in an economic system 0 The Market System amp The Three Major Economic Questions A Graphical Representation
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