ECO 1102 Chapter Notes - Chapter 1: Market Failure, Market Economy, Opportunity Cost
39 views4 pages
![ECO 1102 Full Course Notes](https://new-docs-thumbs.oneclass.com/doc_thumbnails/list_view/2748243-class-notes-ca-uottawa-eco1102-lecture1.jpg)
46
ECO 1102 Full Course Notes
Verified Note
46 documents
Document Summary
Economy: greek word for one who manages a household . Economics is the study of how society manages its scarce resources. It is important because society only has a limited amount of resources. Hence, society cannot produce all the goods and services people wish to have. Hence, money growth is the ultimate source of inflation: society faces a short-run tradeoff between inflation and unemployment. The last 3 affect the economy as a whole. To get something, we usually have to give up something else. Making decisions requires trading off one goal for another. Example: the government can either be efficient or equal in terms of how they utilize the scarce resources. In efficiency, the government uses the resources to the best of its ability, Eco1102 introduction to macroeconomicschapter 1 whereas in equity, the resources are distributed fairly among the citizens.
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers
Related textbook solutions
Related Documents
Related Questions
21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.