ECO 212 Study Guide - Midterm Guide: Microeconomics, Demand Curve, Opportunity Cost
3 Oct 2018
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Define economics and distinguish between microeconomics and macroeconomics. Explain the two big questions of economics. Explain the key ideas that define the economic way of thinking. Explain how economists go about their work as social scientists and policy advisers. Macroeconomics is the study of the performance of the national and global economies. Two big questions summarize the scope of economics : Self-interest: you make choices that are in your self-interest choices that you think. Social interest: choices that are best for society as a whole are said to be in the social are best for you. interest. Six key ideas define the economic way of thinking : People make rational choices by comparing benefits and costs . Benefit is what you gain from something. Cost is what you must give up to get something. Most choices are how-much choices made at the margin . The production possibilities frontier (ppf) is the boundary between those combinations.
