Micro: Ch 1-4 (2024)

Key Question from Ch 1 is...

• Why Can't you Always Get What you Want?

• What Do Economists Do?

• Who Decides What you Get?

• Who Gains From Trade?

Economic mysteries are known as

• Enigmas

• EWoT

• PPFs

• Capitalism

The Founding Father of Modern Day Economics is

• Milton Friedman

• Thomas Sowell

• FA Hayek

• Adam Smith

Which of the following is NOT a tool economists use?

• Graphs

• Scientific Method

• Models

• Regulations

What does Ceteris Paribus mean?

• no such thing as a free lunch

• all other things being equal

• There's a fly in my soup

• What to make, how to make, and for whom

The first EWoT: ___________ forces tradeoffs.

• Opportunity Cost

• markets

• margin

• scarcity

Our first model demonstrated a country with two goods. It could be bowed out or straight. Demonstrated tradeoffs, productivity, and more.

• Production Possibilities Frontier

• Circular Flow Model

• Supply and Demand

• Comparative Advantage

Economists are obsessed with two things: ___________ & ___________.

• Ties and sweaters

• scarcity and opportunity cost

• productivity and efficiency

• goods and services

Land, Labor, Capital, and Entrepreneurship. The input to get the output. The scarce resources.

• PPF

• COMS

• FOP

• EWoT

Is the next unit worth it or not? If so, keep going until they equal.

• Marginal Analysis

• Opportunity Cost

• Scarcity

• Utility