Lecture 1 Lecture 1 Lecture 1 Lecture 1 Lecture 1

100

Scarcity of Resources
Why do we have to make so many choices?

100

Scarcity of resources
Why is efficiency so important?

100

Growth rates of labor force and labor productivity
What determines how fast output should go up?

100

Land, labor and Capital
What are the factors of production?

100

Good - Equity Bad - Efficiency
What was the tribal economy good at? Bad at?

200

Opportunity Costs
What do all actions have associated with them?

200

The goal is to produce using the fewest resources possible (including workers)
Why is creating jobs not a goal for producers?

200

They signal who should get scarce resources and who should not
How do profits and losses help allocate resources?

200

It increases efficiency
How does technological change fight off scarcity?

200

Better - Efficiency Worse - Equity
What did ancient Rome or Feudal Europe do better? Worse?

300

They impact all of our decisions
Why do incentives matter?

300

It promotes efficiency
Why is competition so valuable to society?

300

To help make good choices
What do we need economics laws and models for?

300

Technological changes
How can there be more oil today than in the past?

300

Good - Efficiency Bad - Equity
What is market capitalism good at? Bad at?

400

No, because of opportunity costs
Is a free ticket to a movie free? Why?

400

It promotes division of labor and higher efficiency
Why are voluntary exchanges good for society?

400

If the price is greater than zero
How do you know if anything is scarce?

400

What is produced, how and who gets it
What three big questions must an economic system answer?

400

Equity, Security
Planned totalitarian systems promise _______ but are actually best at _______.

500

To produce things of value
Why do people earn income?

500

Output, more stuff must be produced
For living standards to go up, what must happen?

500

Bads
What is not scarce?

500

efficiency, equity and security (stability)
What are the three standards for rating an economic system?

500

Well on all three! (efficiency, equity and security)
How do democratic socialist systems perform?

Econ Exam 1 Study (1 of )

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