ECN 001A Study Guide - Comprehensive Final Exam Guide - Opportunity Cost, Demand Curve, Wheat

• School: UC-Davis
• Department: Economics
• Course: ECN 001A
• Professor: Paul Lombardi

Document Summary

But this reduces incentive to work and produce, shrinks the size of the economic pie : taxes versus government spending taxes reduce market efficiency taxes used to support a range of goods and services: roads, police, schools, etc, 2. Markets are usually a good way to organize economic activity home: market: a group of buyers and sellers (need not be in a single location) If the market distribution of economic well-being is not desirable, tax, or welfare policies can change how the economic pie is divided: the principles of how the economy as a whole works, 8. A country"s standard of living depends on its ability to produce goods and. Prices rise when the gov prints too much money. Society faces a short-run tradeoff between inflation and unemployment. In the short-run (1-2 years), many economic policies push inflation and unemployment in opposite directions.