ECON 101 Lecture Notes - Lecture 1: Externality

• School: UBC
• Department: Economics
• Course: ECON 101
• Professor: Ratna Shrestha

Document Summary

#5- specializaion and tradeof between countries (imports, exports) Market power ability to inluence market prices. Asymmetric informaion - when on party has more informaion than the other. Can control prices and prevent irms from collusion (illegal) Sol depends on its ability to produce goods and services (individual producivity, capita per income) Prices rise inlaion (measured in percentage) = n-0/0 x 100 ; when bank prints more money, prices go up. Society faces a short-run tradeof between inlaion and unemployment; if we try and control. Inlaion, there will be an impact on unemployment. Lower money (print less) inlaion going down- firms produce less (labor cost is sill the same) When we try and lower inlaion unemployment goes up in a short run because prices remain the same in the short run.