MIDTERM 1 ECON 201 CONCORDIA !

NOTES




MID TERM 1
-




CHAPTERS
I -
4

, CHAPTER #1
LESSON #1
INTRO TO KEY
IDEAS

,DEFINITION


MICROECONOMICS :
Study of individual behaviour in the

context of scarcity of
-
resources (money ,
time .
. . )


2
How do producers and
buyers react against
scarcity ? given incentives
t when




MARKETS & GOVERNMENT


MIXED ECONOMY Private Government
suppliers supply
: t


and
goods services
"
Modern market economies
"




MARKET for
→ Allows trade ,
- specialization
-




Individuals objectives :

Maximizing
ex :



↳ Consumers :
Maximize
happiness
Producers Maximize profit
'
-




Gov 's central role in : Goods I services
economy
-
.




ex : Education ,
health care

laws I regulations
-




→
Accounts for of
Ig
the modem mixed
economy!

, OPPORTUNITY COST & THE MARKET




OPPORTUNITY COST Cost of What must
making choices
:


be sacrificed when option
choosing an


over another ?

↳ Different opportunity costs different= efficiencies =




different speHon skills



A MODEL OF EXCHANGE I SPECIALIZATION




SPECIALIZATION Allocating all available time to
:

producing
One
good .




EX :




€
Specialization ! !
production possibilities / points
Other
along
the PPF I
-
.




Amanda :
More efficient in producing N
Zoe More efficient in
producing F
: