Economics 1021A/B Chapter Notes -Marginal Cost, Marginal Product, Economic Rent

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ECON 1021A/B Full Course Notes

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Chapter 1: introduction to economics/making and using graphs. The what question is what goods and services do we produce? . The how question is how do we use the factors of production to produce these goods/services? . The for whom question is who consumes the goods and services that are produced? : you make choices that are in your self-interest choices that you think are best for you. If the marginal benefit of option 1 is greater than its marginal cost then you will choose option 1. If the marginal cost of option 2 is greater than its marginal benefit than you will not choose. Option 2: positive statements are about what is. A positive statement might be right or wrong but can be tested by checking it against facts: normative statements are about what ought to be. Chapter 2: the economic problem: the production possibilities frontier (ppf) shows the limits to production.

Related Questions

true or false

Human and nonhuman resources are the inputs used to produce goods and services.

Since resources are scarce, society must make choices about what to produce.

Consumers decide what gets produced in Japan.

Microeconomics is the study of aggregate behavior in the economy.

The three basic questions in economics are who, what and why.

The law of demand states that the quantity demanded of any good is inversely related to its price.

coppermole152

read it and write down your ideas

Even though they have been doing it all their lives, people need to study communication simply because it is so complex. As stated in chapter 3 of the book, we all perceive things differently and "perception and communication influence each other, perception shapes our understanding of others' communication and the choices we make in our own communication" (pg. 41). For the reason that the choices we make and the ways that we view things/situations are changing everyday, communication between two individuals also changes and becomes more complex. Though we can communicate in general, how we communicate and what we communicate depends on how we perceive the world around us, making communication not as simple as it seems. As humans, we create broad categories of things (prototypes) and place people into them (Wood pg. 43). We then go on to create a more detailed assessment (a personal construct) where we measure a person or situation with a certain dimension of judgment (Wood pg. 43). We also place people and situations into stereotypes by making predictive generalizations or simply predicting what the personal/situation will be like or what will happen (Wood pg. 43). With all of these components to a basic path of communicating with others, it's hard to not see why we would study our complex underlying system of human communication. Not only do we make assumptions, but we base our thoughts/actions off of those assumptions which can then all be interpreted differently among various individuals. We study communication to try and dissect all of these interpretations and perceptions of others "to make sense of experience and to predict how we and others will act" (Wood pg. 45). Sometimes we follow a script or just simply act a specific way in a specific situation (like greeting someone and telling them your name) (Wood pg. 45). However, not everyone follows these scripts which just adds to the complexity of communication between us all.

1. Explain why economics is a study of choices. Why do we have to make choices?

2. What are the economic resources? Why are they scarce?

3. Outline the differences between macroeconomics and microeconomics.

4. What are the economic questions? How is each question answered?

5. Outline the interaction of supply, demand, and price.

6. What is the difference between a buyers and a sellers market? Provide examples of each in your answer.

7. What causes equilibrium? How does price react?

8. What is the marginal principle? How can you apply it as a consumer?

9. & 10. We all hear talk about the dependency of oil and how higher oil prices affect our economy. Why have we not made greater strides to energy efficiency? Make sure you have at least two references to back your opinion.

Economics 1021A/B Chapter Notes -Marginal Cost, Marginal Product, Economic Rent

ECON 1021A/B Full Course Notes

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