ECO 1104 Lecture Notes - Lecture 1: Externality, Market Failure, Blue Book
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ECO 1104 Full Course Notes
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Chapter 1: ten principles of economics same as eco1104. Unifying ideas: while multifaceted, economics is unified by several central ideas or principles, 10 principles of economics can be categorized to three, how people make decisions, how people interact, how the economy work as a whole. It is the relevant cost for decision making: ex: seeing a movie is not only the price of admission, but also the value of time spent in the cinema instead of elsewhere. Principle #3: rationale people think at the margin: rational people, systematically and purposefully do the best they can to achieve their objectives, make decisions by evaluating costs and benefits of marginal changes. You can pay to have it repaired, or sell the (cid:272)ar (cid:862)as is. (cid:863) Explain: blue (cid:271)ook (cid:448)alue is ,(cid:1009)(cid:1004)(cid:1004) if tra(cid:374)s(cid:373)issio(cid:374) (cid:449)orks, ,(cid:1011)(cid:1004)(cid:1004) if it does(cid:374)"t, blue (cid:271)ook (cid:448)alue is ,(cid:1004)(cid:1004)(cid:1004) if tra(cid:374)s(cid:373)issio(cid:374) (cid:449)orks, ,(cid:1009)(cid:1004)(cid:1004) if it does(cid:374)"t.