Fallacy of composition is the mistake of thinking if a part s true then the whole must be true
Fallacy correlation vs. Causality
Chapter Resources: Land Labor capital Entreprenurial activity
Total savings: Not Determined by the sums of individual decesion to save
Incomes payment for the use of resources for a specific time Rent wages profits
Production Possibilities frontier Model-PPC
Post Hoc: Mistake of thinking because one thing follows the other then they might be the thing that caused it.
Similar Assumption P.25
Opportunity Cost
Allocative Efficiency- The right combination of Output
unemployment is micro
Investment and Future Growth
Chapter 2
Resources Input
Land- All natural Resources
Labor- All activity that can be produced
Capital Products that are used to produce other products all inclusive factory buildings macheinary Transport Equipment Physical things, Real
Investment: Purchase of Capital
Financial assets:Stocks bond +Money Buying Financial Capital assets: