MGEB02H3- Midterm Exam Guide - Comprehensive Notes for the exam ( 12 pages long!)
11 Oct 2017
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Document Summary
Microeconomics: branch of economics that deals with the behavior of individual economic units consumers, firms, workers, and investors as well as the markets that these units comprise. Macroeconomics: branch of economics that deals with aggregate economic variables, such as the level and growth rate of national output, interest rates, unemployment, and inflation. Positive analysis: analysis describing relationships of cause and effect (using explanation/prediction) Normative analysis: analysis examining questions of what ought to be (i. e. what is best?) Market: collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products. Arbitrage: practice of buying at a low price at one location and selling at a higher price in another. Perfectly competitive market: market with many buyers and sellers, so that no single buyer or seller has a significant impact on price (e. g. agricultural goods) Market price: price prevailing in a competitive market.
