Isu eco 103 - Study guides, Class notes & Summaries

Adam Smith () - Father of economics Capital - Tools, equipment, tools, machinery, etc., that help produce another product Ceteris Paribus - - Latin phrase meaning "other things being equal" - Because we want to simplify the model and look at the relationship between variables Circular Flow Diagram - Shows the relationship between households and firms Command Economy - The government chooses everything Consumer Surplus - The amount an individual would have been willing to pay minus what t...