ECON 101- Final Exam Guide - Comprehensive Notes for the exam ( 119 pages long!)
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ECON 101 Full Course Notes
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Unlimited wants: opportunity cost, bene t forgone, next best choice, every time when choice is made. !2: respond to incentives, motivated by self-interest, decision makers & their choices, decision makers, consumers, producers, government, how decisions made, maximize utility, made at the margin, flow of income and expenditure i. Eco(cid:374)o(cid:373)ic theories, data, a(cid:374)d graphs: positive and normative statements, positive statements i. can be proved, not based on value judgement, normative statements i. cannot be proved, based on value judgement iii. Linear related i. positively: negatively, slope - amount of change in one variable due to the change of another, non-linear functions. Ceteris paribus: we discuss the effect of one factor but assume the other factors remain constant: quantity demanded and price i. A basic economic hypothesis is that the price of a product and the quantity demanded are related negatively, other things being equal.
