Exam (elaborations)
FSU Eco 2013 Final Exam (1)
FSU Eco 2013 Final Exam (1)
[Show more]
Seller
Follow
Content preview
FSU Eco 2013 Final ExamWhat is economics? - ANS-the study of how we make choices under scarcity
What is scarcity? - ANS-the concept that there is less of a good freely avalible from nature than
peple would like
(time,money,textbooks)
scarcity necessitates rationing, what is rationing? - ANS-allocating scares goods to those who
want them. Price is used to ration goods
Types of resources - ANS-Human, Physical (man-made, machines), Natural (gold)
capital - ANS-human-made resources used to produce other goods and services
Resources are scarce - ANS-trade-off must be made (opportunity costs)
Opportunity cost is - ANS-the highest valued alturnative that must be sacrificed when choosing
an option
Individuals are rational: - ANS-they try to get the most from their limited resources "greatest
benifit @ least possible cost"
Ex. Chick-fil-a vs. 5 guys burger
Insentives matter - ANS-Choice is influenced in a predictable way by changing the incentives
Individuals make decisions at the margin. What does marginal mean? - ANS-the effect of a
change in the current situation
ex. taco bell, taco deal
cost-benifit analyst - ANS-one will undergo an action when the marginal benefit outweighs the
marginal costs
ex. additional airport security vs. lead clean-up
Information helps us make better choices but is costly - ANS-ex. New house vs. new notebook
Beware of secondary effects - ANS-economic actions generate both direct and indirect effects
ex. fuel efficiency regulation, trade restrictions
What are secondary effects? - ANS-the indirect impact of an event or policy that may not be
easily and immediatly obserbable
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lydiaomutho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.07. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76667 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now