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
:
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
:
