ECON 1000 Lecture Notes - Lecture 1: Invisible Hand, Marginal Cost, Marginal Utility
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11 Dec 2016
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E(cid:272)o(cid:374)o(cid:373)y (cid:272)o(cid:373)es f(cid:396)o(cid:373) the g(cid:396)eek (cid:449)o(cid:396)d fo(cid:396) (cid:862)o(cid:374)e (cid:449)ho (cid:373)a(cid:374)ages a household(cid:863) A household is like an economy in how it: allocates its scare resources among its various members, takes into account each members abilities, efforts and desires. Scarcity is how society only has so many resources so it cannot provide the maximum goods and resources to please every citizens. Economists study how people make decisions, how they work, what they buy, how they save and how people interact with each other. The multitude of buyers and sellers determine the price of a good or service. 4 principles of decision making: summary: Give up efficiency so that more people can have a good standard of living. The cost of something is only what you give up to get it: Weight all the losses and gains so that you understand what you have to give up so you can get something.
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21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
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B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
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B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
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Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.