ECO1104- Final Exam Guide - Comprehensive Notes for the exam ( 46 pages long!)

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

Land: natural resources or any derivative: crops, minerals, land itself (buildings and structures) Labor: human effort: capital: something that is used to make something else, structures, vehicles, plant and equipment, machinery. Because of scarcity, consumers and producers have to make choices. Opportunity cost - the value of the option that was not selected: the highest foregone alternative: no scarcity, no choices, no choices, no opportunity cost. The many types of economies: robinson crusoe, tribal, feudalistic, command, free-market, social democratic (mixed) Key features of a market economy: decentralized - consumptions, production, ad exchange decisions are made, the primary allocative mechanism used is the price system, extremely inegalitarian. Free good - not the price you pay out your pocket. But there is no such thing as a free good. Economy is an institution in which actors produce, consume and exchange. Two primary types of economic actors/actresses: consumers, producers. Principle 2: the cost of something is what you give up to get it.