ECON 211 Exam 1 (UNL) Complete Guide
Fundamental Economic Concepts
1. Study of Economists: - ️ Economists study all human behavior.
2. Economic Agent: - ️ An economic agent is an individual or a group that makes choices (examples include consumers
choosing between a bacon cheeseburger o...
ECON 211 Exam 1 (UNL) Complete Guide
Fundamental Economic Concepts
1. Study of Economists:
- ✔️ Economists study all human behavior.
2. Economic Agent:
- ✔️ An economic agent is an individual or a group that makes choices (examples include consumers
choosing between a bacon cheeseburger or tofu burger, and a parent deciding between public or
private school for their child).
3. Scarce Resources:
- ✔️ Scarce resources are things that people want, where the quantity that people want exceeds the
quantity that is available.
4. Scarcity:
- ✔️ Scarcity exists because people have unlimited wants in a world of limited resources.
5. Definition of Economics:
- ✔️ Economics is the study of how agents choose to allocate scarce resources and how those choices
affect society.
6. Positive Economics:
- ✔️ Positive economics describes what people actually do.
7. Normative Economics:
- ✔️ Normative economics recommends what people ought to do.
8. Microeconomics:
, - ✔️ Microeconomics is the study of how individuals, households, firms, and governments make
choices and how those choices affect prices, the allocation of resources, and the well-being of other
agents.
9. Macroeconomics:
- ✔️ Macroeconomics is the study of the economy as a whole.
10. Optimization:
- ✔️ Optimization is the process by which people decide what to do by consciously or unconsciously
weighing all known pros and cons of the different available options to pick the best feasible option.
11. Equilibrium:
- ✔️ Equilibrium is a situation in which no agent would benefit personally by changing their behavior.
12. Empiricism:
- ✔️ Empiricism is analysis that uses data or is evidence-based.
13. Trade-Offs:
- ✔️ Trade-offs arise when some benefits must be given up in order to gain others.
14. Budget Constraints:
- ✔️ Budget constraints are the set of things that a person can choose to do (or buy) without
exceeding their budget.
15. Opportunity Costs:
- ✔️ Opportunity costs are the best alternative activity given up when a choice is made.
16. Cost-Benefit Analysis:
- ✔️ Cost-benefit analysis is a calculation that adds up costs and benefits using a common unit of
measurement, like dollars.
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R186,06. You're not tied to anything after your purchase.
