After finishing chapter 1 you should be able to: 1. Define the following terms: goods, services, resources, labor, capital, land, entrepreneurial ability, scarcity, and rational self interest. 2. State the result of scarcity. 3. State the subject matter of economics. 4. Distinguish between Microeconomics and Macroeconomics. 5. Distinguish between positive and normative economics. 6. State the goal of economic theory. 7. State how a theory is tested. 8. Identify the implications of rational self-interest. 9. Identify 3 common mistakes made in faulty economic analysis. Notes for …
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showed last 75 words of 906 total
…The rich do not pay enough in taxes  The City of Richmond should reduce its business taxes.  The allocation of livers for transplantation in the US last year was not fair.  Question 7, p.16 Read the appendix. If the material is not familiar to you, click on the graphing tutorial for Chapter 1 in the Interactive Study Center at the McEachern Interactive web site. The instructor does not plan to discuss the appendix in class. ------------------------------------------------------------------------ **Bibliography**