Q&A ECO 201 Final Exam With Complete Solutions!!What is economics? - ✔✔ The social science that studies production, distribution, and consumption of goods and serves // the study of the allocation of limited resources across unlimited wants What does an economist examine? - ✔✔ who gets what, how, why, and when Land - ✔✔ Inputs that exist in the world around us, sometimes called natural resources ex. water, air, plants, dirt Labor - ✔✔ Human input, sometimes called human capital.ex. blue collar workers, white collar workers Capital - ✔✔ Human-made inputs, stuff that makes stuff.ex. machines, roads, tractors https://www.stuvia.com/en-us/user/SCHOOLFLIX 1 / 3
Q&A Money - ✔✔ nonproductive capital. Represents a firms ability to purchase capital Entrepreneurship - ✔✔ Bringing together land, labor, and capital to create a good Technology - ✔✔ not listed as an input, it is the recipe by which we bring together land, labor, and capital Positive Economics - ✔✔ What does the world look like and how are things allocated. generally made up of statements or facts.Normative Economics - ✔✔ How should the world work and how should things be allocated. generally normative statements are value laden statements Microeconomics - ✔✔ understanding how we allocate particular goods and resources . labor markets ex. Buying apples vs. buying cars Macroeconomics - ✔✔ How nations make trade-offs in times of aggregate spending and production, and in public policy, and the consequences of these trade offs ex. labor markets, GDP https://www.stuvia.com/en-us/user/SCHOOLFLIX 2 / 3
Q&A resource payment - ✔✔ Land // Rent Labor // Wage Capital // Interest Entrepreneurship // Profit What is Value? - ✔✔ What are we willing to give up to get something we want value does not equal price Opportunity Price - ✔✔ The thing or activity we give up to get what we want or do what we do. The MOST valuable thing we give up Sacristy Principle - ✔✔ The opportunity cost of spending more times on any activity is having less time avialable to spend on others Absolute Advantage - ✔✔ When one person (firm or country) can produce a good with less time or resources Comparative Advantage - ✔✔ When one person (firm or country) is she/he/they can produce a good at a lower opportunity cost than another Law of Demand - ✔✔ The (usually) inverse relationship between price and quantity Demand Schedule - ✔✔ A tabular listing of price and quantity
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