HIST 1300- Final Exam Guide - Comprehensive Notes for the exam ( 33 pages long!)
1 Dec 2017
School
Department
Course
Professor
Document Summary
Economics : the study of how society manages its scarce resources. Analyze forces and trends that affect the economy as a whole. The study of how households and firms make decisions and how they interact in markets. The study of economy-wide phenomena, including inflation, unemployment and economic growth. People need to decide between one goal against another. examples: Principle 2: the cost of something is what you give up to get it. Because people face trade-offs they need to make decisions based on the cost and benefits of alternatives. Cost: tuition, paying for books, housing and food, earning you give up (aka opportunity cots) *opportunity cost: whatever must be given up to obtain some item. Principle 3: rational people think at the margin. Rational people make decisions by comparing marginal benefits (additional benefits) and marginal costs (additional costs). Rational people- people who systematically do the best they can to achieve their objectives.
