ECON 460 Lecture Notes - Lecture 2: Thomas Mun
17 Jan 2018
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Document Summary
Sorry for the slightly scattered nature of the notes of the week ending the 23rd september and before. I only found out that i would be taking notes on the evening of the 23rd so future notes will be taken with the understanding that someone other than me will be reading them. Thomas mun says that we have extensive land in britain, we should use it despite the fact that the people who own the land have decided not to. Have to think about costs= mun believes we should just go ahead despite costs= farmers disagree with this opinion. Profit model= if costs are smaller than benefits => can make a profit. What(cid:859)s the useful(cid:374)ess of the profit (cid:373)odel?= it makes sure materials are used efficiently. Can discourage people who are risk averse. Pri(cid:448)ate i(cid:374)di(cid:448)iduals a(cid:374)d (cid:271)usi(cid:374)esses (cid:449)ould(cid:374)(cid:859)t (cid:373)ake the right de(cid:272)isio(cid:374)s if it (cid:449)as si(cid:373)ply o(cid:374) a cost/profit basis. For mun, the trade balance is what matters.
