Class Notes (836,624)
Canada (509,866)
Economics (1,617)
ECON 1BB3 (535)
Lecture

10 Principles of Economics

1 Page
25 Views
Unlock Document

Department
Economics
Course
ECON 1BB3
Professor
Bridget O' Shaughnessy
Semester
Winter

Description
10 Principles of EconomicsThursday January 05 2012804 PMHow People Make DecisionsPeople make tradeoffs when forced to do one thing forced to not do another Everything requires a 1costFirst 7 principles deal with micro 8 10 deal with macroThe cost of something is what you give up to get it Opportunity Cost What you give up to get 2something The thing you would do instead of doing something else Your next best alternative Rational people think at the margin Sometimes persons are not rational always have moments in our 3livestimes When people make a decision they think of the cost and the benefits of it People will choose an option if the benefits outweigh the costs Thinking on the margin means most individuals are forward thinking they look to the future Involves three thingsCosts vs BenefitsaConsider only additional costs and benefits do not consider sunk costsbInclude all relevant costs and benefitscPeople respond to incentives changes a persons behavior Incentives convince a person that something 4they might not think is good for them is actually good for themHow People InteractTrade can make everyone better off k
More Less

Related notes for ECON 1BB3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit