ECON 203

Sylvia Rebeiz

Ch.1- Economics: The Core Issues

1- The Economy is us

2- Scarcity: the Core Problem

3- Factors of Production, Technology

4- Limits to Output

5- Definition of Economics

6- Efficiency

7- Economic Choices and Opportunity Cost (“No Free Lunch”)

8- The 3 Basic Decisions: What, How, For Whom to Produce

9- The 3 Alternative Economic Systems:

Market(Invisible Hand), Command(Government Intervention), Mixed

10- Market Failure and Government Failure; Examples

11- What Economics is all about:

Normative/Positive, Macro/Micro, Theory/Reality

12- The Production Possibility Curve: Assumptions and Schedule

13- Increasing Opportunity Cost

14- Efficiency, Inefficiency, Unemployment, Economic Growth

Problems: p. 27 # 2,3,7