CAS EC 101 Lecture Notes - Lecture 2: Econometrics, Economic Planning, Comparative Advantage
tealzebra3 and 39199 others unlocked
56
CAS EC 101 Full Course Notes
Verified Note
56 documents
Document Summary
Anything free in society, something that has no value. Ex: parking space, they have no other use when no one is using it. Everything that has an alternative use has value. Whenever you use something or do something you"re not doing something else and that"s a loss( cost) There"s a cost to you being here, besides the tuition. Efficiency - making economy as big as possible. Question of distribution how pie is slice up- critical issue, income distribution become more unequal. Inhibit economic behavior, if you"re money is going to be taxed work less. Trade off but debate about how big it would be. Greater equality more social stability for greater economy. How we are going to define what we are not doing. Economists think about what we are not doing (that"s the idea of opportunity cost) Opportunity cost- most valuable next best use of your time, its what you give up in order to get something.