ECON101 Study Guide - Midterm Guide: Comparative Advantage, Oligopoly, Perfect Competition

• School: University of Alberta
• Department: Economics
• Course: ECON101
• Professor: Alexander Gainer

Document Summary

Principle #2: the cost of something is what you give up for it. Principle #6: markets are usually a good way to organize economic activity. Principle #7: governments can sometimes improve market outcomes. Can be applied to any area of life: however, there are 2 main areas: Health care (spending of money and determining which programs to fund) Scarcity: unlimited wants and a limited source of resources. Essentially, economics is the study of human actions and choices. Major concept: to obtain certain resources, people/societies must be willing to give up other resources, this is the concept of economic tradeoff (referred to as opportunity cost). Principle #2: the cost of something is what you give to get it. To consider the true cost of something, you must consider everything you give up getting it. Tophat question: what is the biggest cost of attending university for most students? o.