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Lecture

ECO100Y5 Lecture Notes - Mixed Economy, List Of Pepsi Variations, Positive Statement

by

Department
Economics
Course Code
ECO100Y5
Professor
Edward Ho

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Eco100y5
Chapter 1
Market=place where there are many buyers
for example, orientation where there are more potential buyers
People that want to pay a higher price perceive to have placed a higher value on
the product.
-resource allocation=>most valuable use=>efficient
-resources are limited=>scarcity
-use the product in the most efficient way, because we have limited resources
-all usages of limited resources “trade off”. To get something we have to pay off
something.
Product possibility boundary=>max output mix(x,y) you can produce given
resources technology (the line on the graph in ppt1)
-when it is in the line, not using all resources “wastage”
Market: efficient
Sellers: find buyers where they want
to pay a higher price
Buyers: go to a market where the
products are lower price
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1. What and how to produce?
- Ask first question what does the market wants,.
-the least costly way.
2.What and who to consume?
-the products will always go to the one with the highest bid.
3.Why resources are sometime idle? “macro”
-demand deficiency
4.Productive capacity growing “economic growth”?
- the more money we have, the more we can consume, the better living
standard and well being of economy
5.How do we study economics? “model”
-build model to study what the world is going on
Markets input and output
revenue expenditure
cost income
goods and services
Resources input: 1. Private 2. Public =>households “ownership”
output
input
firms
households
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