ECO101H1 Lecture Notes - Lecture 1: Bounded Rationality, Forego, Market Failure
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ECO101H1 Full Course Notes
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Thinking like an economist - lectures 1 and 2. Models can be applied to scenarios to predict implication of a course of action. If predictions from model is good, model is good. Not all choices should/will be made by individuals. Sometimes government needs to make choice for betterment of society. In market economy, my choices influence your choices and vice versa. Economics is about allocation of scarce resources (land, labor, physical and human capital) Resources are limited; not all demands can be satisfied. If you buy one thing, you can"t use the money to buy something else. Cost is just how much is paid for product; there"s also the associated cost of what you lost by choosing to buy that particular product instead of something else. Opportunity cost is the value of the alternative foregone. What is given up to spend on the other thing.