ECON 2000 : Exam 1 Notes
Document Summary
Pencils: lead is made in africa, plastic comes from oil which is then. Why study economics: way of thinking, three fundamental concepts, opportunity cost, the best alternative that we forgo, or give up, when we make a choice or a decision, ex. Increase in the total output of useful goods: stability, a condition where output is growing steadily with little fluctuation in price and employment. Chapter 2: output, goods and services which are of value to households, factors of production/input/resources, anything provided by nature or by previous generations that is used up to produce output, capital is a type of input. Inside graph: unachievable points, points outside graph, marginal rate of transformation, the slope of a production possibility frontier is called marginal rate of transformation. Income and wealth: income= flaw variable, wealth= stock variable, income is the amount that a household earns each year.
