ECO 1104 Lecture Notes - Price System, Human Resources Development Canada, Opportunity Cost

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

What is bad economic reasoning is often good politics. The transitional jobs fund" of human resources development canada in the late 1990s provided subsidies for construction of golf courses. The chr tien government asserted that these subsidies created jobs" and thus worked well for canadians". Creating jobs, conferring benefits however, this is the manna from heaven or free lunch fallacy. The construction of the golf course has an opportunity cost land, labour, capital must be reallocated from other potential uses, which might be more productive elsewhere. Types of economies: robinson crusoe, tribal (couldn"t be expelled from the land either), feudalistic, command, free-market (singapore, hong kong), social democratic (mixed)( the us, canada, the uk, italy g7, g20, g8) Principle #6 markets are usually a good way to organize economic activity (p9) (financial meltdown on wall street and the horrific damage that it did to the broader economy) ------- not always.