Log in
HomeClass Notes1,200,000CA670,000

EC120 Lecture Notes - Lecture 2: Opportunity Cost

23 views1 pages
School
WLU
Department
Economics
Course
EC120
Professor
Ken Jackson

For unlimited access to Class Notes, a Class+ subscription is required.

carminegrasshopper545 and 38337 others unlocked
EC120 Full Course Notes
30
EC120 Full Course Notes
Verified Note
30 documents

Document Summary

Low income line is what is widely regarded as the poverty line in canada: even though stats canada refuses to acknowledge this. Rich countries can measure rich people easier: less well-off people are not paying as much if any taxes in countries like canada. Poor countries easily track poor people: this is because the rich are not paying taxes and instead pay bribes to not pay taxes. Economists split their time trying to answer questions that are possible to answer. Split their time between positive and normative questions. Positive questions: has an answer or a potential answer. Models are by definition simplification: this is (cid:271)e(cid:272)ause if they did(cid:374)"t si(cid:373)plify the(cid:396)e (cid:449)ould (cid:271)e (cid:374)o use of the(cid:373) Economic models are shown by math/graphs because it creates precision. Important concept is trade-offs when you make more of one thing you make less of another. Economic models/graphs are in the simplest form (one input and two outputs)

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

EC120 Lecture Notes - Lecture 2: Eurocopter Ec120 Colibri, Perfect Competition, Opportunity Cost
purplearmadillo323
EC120 Lecture Notes - Lecture 2: Sept, Complete Review, Perfect Competition
bronzeskunk343
EC120 Lecture Notes - Lecture 2: Opportunity Cost, Perfect Competition
ivoryserval443

Related Questions

1. Scarcity in economics means: we do not have sufficient resources to produce all the goods and services we want. the wants of people are limited. there must be poor people in rich countries. shortages exist in nearly all markets. You like to read Vogue and Sports Illustrated. You have only $5 to spend, so you only buy Sports Illustrated. The statement that best represents this economic concept is: resources are scarce. the real cost of something is what you must give up to get it. positive economics explains how the economy actually works. economic models are used to answer “what if” questions. . If the state government allocates additional spending on education, the opportunity cost is: zero. the dollar amount of the additional spending. considered only if additional taxes need to be raised to fund the spending. measured in terms of the best alternative use for that money. For a student that owns his or her own home and doesn't plan to live in the dorm the cost of going to college is: tuition and the cost of housing. tuition, the cost of housing, and the cost of books. tuition, the cost of books, and forgone income. forgone income only. Keynesian economics stressed: the importance of total spending. the self-correcting power of free markets. the long run. that the Depression should run its course to bring down the high cost of living. The economic policy that uses changes in government spending and taxes to affect the overall spending in the economy is known as: a tax-and-spend policy. monetary policy. fiscal policy. free-trade policy. When building a model, economists: simplify reality in order to highlight what really matters. attempt to duplicate reality in all of its complexity. ignore the facts and instead try to determine what the facts should be. are careful to avoid the scientific method. Which is a normative statement? The minimum wage has not kept pace with inflation. The minimum wage is an important tool in fighting poverty and should be increased. The minimum wage can create higher unemployment for teens and unskilled workers. A higher minimum wage is expected to increase the price of a fast-food cheeseburger. Which is an example of a positive statement? The poverty rate should be 4%. A high rate of economic growth is a more important economic goal than a low rate of unemployment. The federal government pays for 46% of U.S. health care costs. Everyone in the country should be covered by national health insurance. Economists may disagree about policies because they: may approach the issue using the same sets of values. may use different economic models. enjoy disagreeing with each other. only consider issues in positive economics.