ECON 1000 Study Guide - Midterm Guide: Deadweight Loss, Technological Change, Demand Curve

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Ardeshir Noordeh

Document Summary

The economic way of thinking: economics is divided into two main parts, microeconomics: is the study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments. Capital earns rental rate (financial capital earns interest). Political institutions: democracy, accountability, human rights, freedoms (religious, economic and political) Economic institutions: enforcement of property rights and contracts, the conduct of government"s monetary and fiscal policy. Others: control of corruption, rule of law and order: economics as social science, economists distinguish between two types of statement: How things are (the statement of facts) positive statements. Since many economic variables interact with each other, it is. Economics: tools of analysis challenging to unscramble the effect of one variable from the other. The opportunity cost of producing that 1 million pizzas is 3 million cans of cola. If we produce exactly 2. 5 million pizzas, marginal cost equals marginal benefit: we cannot get more value from our resources.