ECON 1BB3 Lecture : rough econ notes
12 Dec 2012
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ECON 1BB3 Full Course Notes
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Final exam (5-15) 40% multiple choice, 2 hours. Online homework 12% for online homework, 10/14 assignments are graded. Nelsonbrain. com, take the course key (page 8, 12 letter code) slide 20, enter your mac id. Ten principles of econ: people face tradeoffs, the cost of something is what you give up to get it. Opportunity cost: rational people think at the margin. Weighing additional cost and benefit (all that is relevant: people respond to incentives, trade can make everyone better off. The idea is to cause more gain than loss, when loss is necessary: markets tend to increase efficiency. Important trade off between equity and efficiency: sometimes the government can eliminate market efficiencies. Externality (transaction between 2 affects a third party) Positive: vaccines, negative: cigarettes: a country"s standard of living depends on it"s productivity, prices increase when the government prints too much money. Hyper-inflation (zimbabwe, 1: there is a short run trade-off between inflation and unemployment.
