·
economics
,CONTENT
Unit 1 :
Basic Economic Concepts pg . 3
Unit 2 :
Macro Measures pg .
9
Unit 3 : Fiscal
Policy pg . 13
Unit 4 :
Monetary Policy pg
. 17
Unit 5 Intl Trade
Foreign Exchange
: & 20
19 .
, Unit 1 :
Basic Economic Concepts
ECONOMICS : SCIENCE OF SCARCITY
>
- unlimited wants ,
but limited resources
of CHOICES
S
study
Theoretical economics : scientific method to make generalizations/abstractions to develop theories
Positive statement : based on facts (what is
Normative statement :
includes value
judgements (what ought to be
Trade-off :
every choice has a cost
ASSUMPTIONS +
scarcity
& trade-off
1) everyone acts in their own "self-interest"
2) everyone compares marginal cost a
marginal benefits
3) real-life situations be explained w/ models
can a
graphs
VOLUNTARY EXCHANGE :
you don't need to spend money if you don't want to
Consumer surplus difference between what you're
willing to pay what you actually (Boyer's Max - Price)
: a
pay
Producer's surplas : difference between the price the seller received a how much they're willing to sell for (Price-seller's Min)
Marginal analysis making :
decisions based on increments
Opportunity cost : most desirable alternative given up when you make a choice
Utility :
satisfaction Price :
amount consumer pays
Marginal :
additional Cost : amount seller pays to produce good
Allocate : distribute Investment money spent
:
by businesses to improve production
Consumer goods : created for direct consumption
Capital goods : created for indirect consumption ; make consumer
goods
economics
,CONTENT
Unit 1 :
Basic Economic Concepts pg . 3
Unit 2 :
Macro Measures pg .
9
Unit 3 : Fiscal
Policy pg . 13
Unit 4 :
Monetary Policy pg
. 17
Unit 5 Intl Trade
Foreign Exchange
: & 20
19 .
, Unit 1 :
Basic Economic Concepts
ECONOMICS : SCIENCE OF SCARCITY
>
- unlimited wants ,
but limited resources
of CHOICES
S
study
Theoretical economics : scientific method to make generalizations/abstractions to develop theories
Positive statement : based on facts (what is
Normative statement :
includes value
judgements (what ought to be
Trade-off :
every choice has a cost
ASSUMPTIONS +
scarcity
& trade-off
1) everyone acts in their own "self-interest"
2) everyone compares marginal cost a
marginal benefits
3) real-life situations be explained w/ models
can a
graphs
VOLUNTARY EXCHANGE :
you don't need to spend money if you don't want to
Consumer surplus difference between what you're
willing to pay what you actually (Boyer's Max - Price)
: a
pay
Producer's surplas : difference between the price the seller received a how much they're willing to sell for (Price-seller's Min)
Marginal analysis making :
decisions based on increments
Opportunity cost : most desirable alternative given up when you make a choice
Utility :
satisfaction Price :
amount consumer pays
Marginal :
additional Cost : amount seller pays to produce good
Allocate : distribute Investment money spent
:
by businesses to improve production
Consumer goods : created for direct consumption
Capital goods : created for indirect consumption ; make consumer
goods
