ENPC PEDIATRIC ASSESSMENT AND TRIAGE
STUDY NOTES
◉ Eight Guideposts to Economic Thinking.
Answer: 1. The use of scarce resources is costly; trade-offs must
always be made
2. Individuals choose purposefully; they try to get the most from
their limited resources
3. Incentives matter: choice is influenced in a predictable way by
changes in incentives
4. Individuals make decisions at the margin
5. Information is costly but very helpful
6. Beware of secondary effects: economic actions often generate
indirect as well as direct effects
7. The value of goods and services is subjective
,8. The test of a theory is its ability to predict
◉ Positive Economics.
Answer: concerned with "what is," can be tested, and is objective
◉ Normative Economics.
Answer: concerned with what "should be," can NOT be tested, and is
subjective.
◉ Pitfalls to avoid in economic thinking.
Answer: 1. Violation of the ceterus paribus condition can lead to the
wrong conclusion
2. Good intentions do not guarantee desirable outcomes
3. Association is causation
4. Fallacy of composition: what is true for one person might not be
true for all.
◉ Microeconomics vs. Macroeconomics.
,Answer: Microeconomics is the study of economics at an individual,
group or company level. Macroeconomics, on the other hand, is the
study of a national economy as a whole.
◉ Opportunity Cost.
Answer: The highest valued alternative that must be given up to
engage in an activity
◉ Trade Creates Value.
Answer: participants in markets are able to specialize in the
production of goods and services that they have a comparative
advantage in making. The values of goods are also subjective.
◉ Private Property Rights.
Answer: the concept that people have the right and privilege to
control their possessions as they wish
◉ Incentives of Private Property Rights.
Answer: 1. Cause owners to bear the opportunity costs of ignoring
the wishes of others
2. Provide incentives for good stewardship
3. Create incentives for conservation or environmental quality
, 4. Hold owners accountable for their actions
5. Can align incentives so as to promote conservation versus
extinction
◉ Production Possibilities Curve.
Answer: A curve showing the maximum attainable combinations of
two products that can be produced.
◉ Assumptions of the PPC (Production Possibilities Curve).
Answer: (1) a fixed amount of productive resources
(2) a given amount of technical knowledge, and
(3) full and efficient use of those resources. The slope of the curve
indicates the amount of one product that must be given up to
produce the other.
◉ What is an efficient point on the PPC?.
Answer: All points directly on the curve
◉ What is an inefficient point on the PPC?.
Answer: Points inside the curve
STUDY NOTES
◉ Eight Guideposts to Economic Thinking.
Answer: 1. The use of scarce resources is costly; trade-offs must
always be made
2. Individuals choose purposefully; they try to get the most from
their limited resources
3. Incentives matter: choice is influenced in a predictable way by
changes in incentives
4. Individuals make decisions at the margin
5. Information is costly but very helpful
6. Beware of secondary effects: economic actions often generate
indirect as well as direct effects
7. The value of goods and services is subjective
,8. The test of a theory is its ability to predict
◉ Positive Economics.
Answer: concerned with "what is," can be tested, and is objective
◉ Normative Economics.
Answer: concerned with what "should be," can NOT be tested, and is
subjective.
◉ Pitfalls to avoid in economic thinking.
Answer: 1. Violation of the ceterus paribus condition can lead to the
wrong conclusion
2. Good intentions do not guarantee desirable outcomes
3. Association is causation
4. Fallacy of composition: what is true for one person might not be
true for all.
◉ Microeconomics vs. Macroeconomics.
,Answer: Microeconomics is the study of economics at an individual,
group or company level. Macroeconomics, on the other hand, is the
study of a national economy as a whole.
◉ Opportunity Cost.
Answer: The highest valued alternative that must be given up to
engage in an activity
◉ Trade Creates Value.
Answer: participants in markets are able to specialize in the
production of goods and services that they have a comparative
advantage in making. The values of goods are also subjective.
◉ Private Property Rights.
Answer: the concept that people have the right and privilege to
control their possessions as they wish
◉ Incentives of Private Property Rights.
Answer: 1. Cause owners to bear the opportunity costs of ignoring
the wishes of others
2. Provide incentives for good stewardship
3. Create incentives for conservation or environmental quality
, 4. Hold owners accountable for their actions
5. Can align incentives so as to promote conservation versus
extinction
◉ Production Possibilities Curve.
Answer: A curve showing the maximum attainable combinations of
two products that can be produced.
◉ Assumptions of the PPC (Production Possibilities Curve).
Answer: (1) a fixed amount of productive resources
(2) a given amount of technical knowledge, and
(3) full and efficient use of those resources. The slope of the curve
indicates the amount of one product that must be given up to
produce the other.
◉ What is an efficient point on the PPC?.
Answer: All points directly on the curve
◉ What is an inefficient point on the PPC?.
Answer: Points inside the curve
