BSB113 Lecture Notes - Normal Good, Deadweight Loss, Baby Bonus
Document Summary
For global happiness to improve we need to raise the income of the poorest people: everyone wants more than what is possible! Decision making framework - decisions are best. Economists assume this is their aim: economy is not about money and values are different to accountants etc, for example making a hospital, you need $. There is only a certain amount of $ but the aim of a hospital is to make people better - this is the benefit side of the formula. Sometimes they will put a money value on each live saved because of this hospital. Drives cost down which keeps consumers happy. Each participant acts selfish for personal gain. Something is driving them to do this but they don"t know why. It wasn"t the happiness of others with their products. Each seller is scared another seller will take their business therefore they lower costs to near cost price.
