• The quantity of consumption of goods & services that people enjoy, on the average.
• It's measured by average income per person

The objects that people value & produce to satisfy wants

Are tasks performed for people

• The opportunity cost that arises from one-unit increase in an activity

• The benefit that arises from a one - unit increase in an activity

• Total production per person employed
• Only an increase in productivity brings a higher standard of living
• Only an increase in productivity per person brings an increase in standard of living

• Is the rising cost of living w/c means a shrinking value of the dollar
• Is caused by an increase in the quantity of money that is not matched by an increase in the quantity of goods and services
• Is measured by the percentage change in the cost of living

Expansion

• Is the business cycle where production & jobs increase
• It begins at a trough and ends at a peak

• Is a business cycle where production & jobs shrink
• It begins at a peak and ends at a trough

• Occurred during the 1930's
• Is the worst ever recession that the economy experienced
• 20% of Canadian labour can't find work
• 28% of Canadian production shrank

• Is a statement of "what is"
• Can be tested by checking against the data

• Statements about "what ought to be"
• Can not be tested & depends on opinion

Economic Model

• Is a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand
• Is simpler than the reality it describes
• What a model includes and what it leaves oyt results from assumptions about what are essential and inessential details

1. Created by Bill Phillips
2. Created w/ plastic & plexiglas tanks at the London School of Economics in 1949. This model still works in London Museum today

• A model that has repeatedly passed the test of corresponding well with the real-world data.
• Is a generalization that summarizes what we understand about the economic choices that people make & the economic performance of the industries & nations

• Born in 1723
• In Kirkcaldy, Scotland
• Wrote the "An Inquiry into the nature and Causes of the Wealth of Nation w/c was published in 1776

Other things remaining the same

• Is the tendency for the values of two variables to move in a predictable & related way
• Would sometimes show the strenght of a causal influence of one variable on the other

• A choice that uses available resources to nost effectively satisfy the wants of the person making the choice
• Only the wants & preferences of the person making the choice are relevant to determine its rationality

• Is the best alternative given up
• The best thing that you must give up to get something

• Is the gain or pleasure that it brings
• Is how a person feels about something
• Is measured by what a person is willing to give up to get it

What are the 2 groups of economic fluctuation or business cycle?

The 2 grps. of economic fluctuation or business cycle are:

1. Expenditure
2. Productivity

The 4 core ideas of Macroeconomics are:

1. Macroeconomic performance results from rational choices that responds to incentives people face
2. The standard of living improves when production per person increases
3. The cost of living rises when quantity of money increases faster than production
4. Economic fluctuations results from expenditure and productivity fluctuations

The 3 steps that scientist take to catalogue positive statements are:

1. Observing & Measuring
2. Model Building
3. Testing

The 3 big issues in Macroeconomics are:

1. Standard of Living
2. Cost of Living
3. Economic Fluctuations - Expansions & Recessions

1990-1991

Define Economics, distinguish bet. Microeconomics & Macroeconomics & Explain the questions of Macroeconomics

A graph of the value of one variable against the value of another variable

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A graph that shows the values of an economic variable for different groups in a population at a point in time

A graph that measures time on the x-axis & variable or variables in w/c we are interested  in the y-axis

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The change in the value of the variable on the y-axis divided by the change in the value of the variable measured on the x-axis

Slope = Δy ÷Δx