ECN 001A Quiz: ECN01A QUIZ Study Guide
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ECN 001A Full Course Notes
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Document Summary
Incentives: positive and negative incentives, direct and indirect incentives. Marginal thinking: economic thinking, marginal analysis, marginal thinking. Trade: markets, circular ow (diagram?, households and rms, product market and resource market, consumers and businesses, creates value, double coincidence of wants. Expectations of future price changes (ties into #2) Chapter 1: what is economics, five foundations of economics, concepts you should know, barter, circular ow, comparative advantage, double coincidence of wants, economics, economic thinking, marginal thinking, markets, microeconomics vs macroeconomics, opportunity cost, scarcity, trade. What factors cause the entire demand curve to shift: describe the di erences between inferior and normal goods. Chapter 4: what is the price elasticity of demand, and what are its determinants, the price elasticity of demand equals the percentage change in the quantity demanded divided by the percentage change in price. When the percentage change in the quantity demanded is larger than the percentage change in price, the demand is elastic.
