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:<3: :<3: :red_flag:Introduction of microeconomics :<3: :<3: …
:<3: :<3: :red_flag:Introduction of microeconomics :<3: :<3: :red_flag:
:<3: :star: :star:10 principles :<3: :star: :star:
1.People face trade : off-give up something to get another thing
-efficiency -society get the most from scarce resources
-equity -benefits distributed fairly ::tada:
invisible hand-Adam Smith-households and firms interacting in markets
Rational people think incentive-make decision- mb>mc :green_cross:
Trade can make everyone better off- specialize in what they do best :no_entry:
opportunity cost- an item is what give up to obtain more benefits thing
7.market power- single person or firm to unduly influence market prices. :<3:
externality-on the well-being of a bystander.
:<3:
10.Philip curve-business cycle— fluctuations in economic activity, such as employment and production
:<3:
9.Property-own and exercise control over a scarce resource
:recycle:
5.Market economy- allocates resources
Economy-study of manage scarce resources
:tada:':tada:tada::economy'- comes from greek word-manage household
2 basic economic models:
:<3:The Circular Flow Diagram
:<3:The Production Possibilities Frontier
:red_flag:...production possibilities frontier -shows the combinations of output that the economy-factors of production and the available production technology.
-:tada:Efficiency
-:tada:Trade-of -:tada:Opportunity cost
-:tada:Economic growth
*
Circular flow
Markets for Goods and Services
Firms sell
Households buy
Markets for Factors of Production
Households sell
Firms buy
:star:Positive statements - descriptive analysis
:star:Normative statements - prescriptive analysis
3 branches of gov
--:star:--Legislative
--:star:--Executive
--:star:--Judicial
-:red_flag:..Without trade, economic gains are diminished.
:<3::<3::<3:Imports—goods produced abroad and sold domestically
:<3::<3::<3:Exports—goods produced domestically and sold abroad
:forbidden:Adam Smith -Wealth of Nations analysis of trade and economic interdependence
:forbidden:David Ricardo- Principles of Political Economy- comparative advantage