ECON 1202 Study Guide - Midterm Guide: Competitive Equilibrium, Gdp Deflator, Discouraged Worker
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ECON 1202 Full Course Notes
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Chapter 2: tradeoffs, comparative advantage and the market. Chapter 3: where prices come from: the market. Chapter 7: comparative advantage and gains from international trade. Chapter 8: measuring gdp total income and production. Chapter 10: economic growth, financial system and business cycles. What goods and services will be produced: 2. Productive efficiency: goods and services produced at lowest possible cost. Allocative efficiency: production is consistent with consumer preference. Marginal benefit=marginal cost: voluntary exchange: transactions that make the buyer and seller better off, economic models, developed to analyze real-world issues, steps: Decide on the assumptions to use in developing the model. Revise model if it fails to explain economic data. Retain the revised model to help answer similar economic question in future. How the government attempts to influence their choices: macroeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.
