OWNER: EMILLYCHARLOTTE
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FIRST PUBLISHED: SEPTEMBER 2024
ECON 100 Midterm Exam Study Guide
with Complete Solutions
microeconomics vs. macroeconomics - Answer✔️✔️-microeconomics: individual choices
and behavior
macroeconomics: large scale economic phenomenon, aggragate
mercantilism and its view of wealth - Answer✔️✔️-wealth = gold or money
a belief from the 16th through the 18th centuries
mostly wanted raw materials to turn into manufactured goods and then sell again in
order to accumulate gold or money
fueled colonialism
Adam Smith - Answer✔️✔️-wrote Wealth of Nations in 1776
commonly considered first modern work of economics
division of labor, the nature of wages, foreign markets
Smith' alternative view of wealth - Answer✔️✔️-wealth = production, not the accumulation
of gold or silver etc.
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, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
production meant you could divide labor and trade resources and all succeed much
more efficiently
Choices and Opportunity Costs - Answer✔️✔️-Economics is the study of how society or
individuals allocate scarce resources to satisfy their wants.
What to produce?
How to produce?
Who gets production?
the opportunity cost of a good or service is its cost in terms of what you give up - the
forgone opportunity to pursue the best possible alternative activity with the same
amount of time or resources
what else could you have done?
what have you given up?
Assumptions of Homo Economicus - Answer✔️✔️-- Self-interested
- Rational
- Maximizing
- Insatiable
- Have full-information
model building and goal of prediction, not realism - Answer✔️✔️-
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