ECON 2000 Chapter : Chapter 2 Key
Document Summary
Mon 11:30 12:30: per capita gdp, economic. *can be found in chapter two, but most likely you won"t be asked this on your exam. More developed countries, like the us, are more capial intensive and focus more on services. Mon 11:30 12:30: provide examples of both negative and positive externalities: Positive: flu shots for yourself preventing sickness for others, you getting an education so that you get a job, but society benefits from educated people, trees planted for aesthetics improving air quality. Negative: second hand smoke, pollution from a factory, increased traffic after building a mall in town: provide an example of a monopoly. The gov"t tries to prevent them from getting too big/powerful, ultimately compromising the quality, quantity, and price of a particular good or service: define factor mobility: The ability to reallocate the factors of production of one industry to another.
