[ECON 1B03] - Final Exam Guide - Ultimate 36 pages long Study Guide!

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Hannah Holmes

Document Summary

Economy - study of how society allocated scarce resources to satisfy everyone"s unlimited wants. Scarcity - means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Micro economy - focuses on individual parts of economy. Market economy - allocating resources through the decisions made by firms and households. Economic rationality - using information to make the best decisions to achieve ones objective. Perfect information - everyone knows everything so you cannot make the wrong decision. Asymmetrical information - there is always someone know knows more about something than someone else. Resource - anything that can be used to male something. 4 big resources - labor, land, capital, and euntrepounourship. Opportunity cost - most of the time to get one thing, you will have to give up something. Explicit cost - something you could get a receipt for, tuition or some cost.