Class Notes for ECON 101 at University of British Columbia (page 7)

ECON 101 Lecture 12 Market Failure, Deadweight Loss and Consumer Choice Market Failure Market failure exists when a market does not create the maximum total surplus. This means the market is producing inefficiently. Some e...

ECON 101 Lecture 11 Producer Surplus The Marginal Cost Curve: Similar to the demand curve and marginal benefit, the supply curve represents the marginal costs of producing one more unit of a good or service for a firm. The...

ECON 101 Lecture 10 Consumer Surplus Welfare Economics: One of the basic concerns of economics is economic wellbeing. This leads to the principle of welfare economics. Welfare economics believes that efficient markets maxi...

ECON 101 Lecture 9 Elasticity Principles of Elasticity: Every demand curve has points where E (elasticity) = 0, infinity and 1. Therefore, one can say that every demand curve has a point where there is perfectly inelastic ...

ECON 101 Lecture 8 Equilibrium and Elasticity Market Equilibrium: In economics, we believe that left alone, the forces of supply and demand will establish a price where the quantity of goods and services produced will equa...

ECON 101 Lecture 7 Demand and SupplyThe Law of Demand:Remember, Economics only functions when we take into account ceteris paribus, all else held constant.The law of demand states that price and quantity demanded are inver...

ECON 101 Lecture 5 Trade Terms to Remember: PPF, Opportunity Cost, Comparative and Absolute Advantage.Production Possibilities Frontier: A graph that focuses on societys production of two goods labeled on the two axis.Any ...

ECON 101 Lecture 6 Trade and the Beginning of Supply and Demand Continuing Beckers model from last class, one thing mentioned was how Beckers model illustrates why people are less likely to get married nowadays. This secon...

ECON 101 Lecture 2 Introduction to Economics (First Half of Topic)*Note: Lecture 1 was simply an introductionwelcome to the class.Definition of Economics:Economics is the study of how society manages its scarce resources.I...

ECON 101 Lecture 3 Introduction to Economics (Second Half of Topic) and Understanding Trade (First Half of Topic) Decisions are made at the Margin:In economics, there is no such thing as extreme decisions.Decisions are all...

ECON 101 - Lecture #21 - Marginal and Average Product plus Costs Marginal Product ● Change in total output with each unit of labor increased ● change in total output / change in labor ● Following graph sh...

ECON 101 - Lecture #20 - Firms and Profit Introduction ● Firms try to maximize their economic profits: do that by analyzing output and input levels ● Economic profit = ○ Total Revenue - Total Costs ...

ECON 101 - Lecture #16 - International Trade with Importing and Exporting Countries No Trade Equilibrium ● Before analyzing the benefits and costs of international trade, we first have to imagine a world whe...

ECON 101 - Lecture #17 - Import Tariff and Externality Effects of an Import Tariff ● To protect the domestic producers, governments may sometimes implement tariff on imports ○ So imports’ prices wil...

ECON 101 - Lecture #19 - Public Policies regarding Externalities Public Policy Solutions to Externalities ● The government has two qualitatives different solutions to externalities ○ Command and control ...