ECON-101 Lecture Notes - Lecture 10: Opportunity Cost, Invisible Hand, Omnipotence
2 Apr 2016
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Wonga@macewan. ca textbook: 6th canadian edition box on cover red binding. Economy: in greek the one who manages a household . Scarcity: the limited nature of societies resources, the foundation of economics. There is no such things as a free lunch . Efficiency: the property of society getting the most it can from its scarce resources. Equity: the property of dristributing economic prosperity fairly among the member of society. Principle #2: the cost of something is what you give you give up to get it. Opportunity cost: whatever must be given up to obtain some item. Principle #3: rational people thing at the margin. Rational people: people who systematically & purposefully do the best they can to achieve their objectives. Marginal changes: small incremental adjustments to a plan of action. Incentive: something that induces a person to act. Principle #5: trade can make everyone better off. Property rights: the ability of a individual to own and exercise control over scarce resources.
