ECO101H1 Lecture Notes - Lecture 1: Opportunity Cost, Market Failure
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ECO101H1 Full Course Notes
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Text required: mankiw (2014) principles of microeconomics, nelson 6th edition. End of term exam: december 6th worth 24% Economics: how individuals/households make decisions and manage scarce. Scarcity: the limited nature of society"s recourses: people face trade-offs. Principles of economics: efficiency: society gets the most from its scarce resources, equality: prosperity is distributed uniformly among society"s members, the cost of something is what you give up to get it. Comparing the costs and benefits of alternative choices. Opportunity cost: refers to a benefit that a person could have received, but gave up, to take another course of action: rational people think at the margin. To make decisions by evaluation costs and benefits of marginal changes. Markets used to benefit and coordinate trade. Government can potentially improve market outcomes if there is market failure. Economics principles of economics as a while. A country"s living depends on its ability to produce goods and services. Price rises when government prints too much.
