Class Notes (1,100,000)
CA (650,000)
UTSG (50,000)
HIS (3,000)
HIS109Y1 (600)
Lecture 1

HIS109Y1 Lecture Notes - Lecture 1: Absolute Advantage, Comparative Advantage, Relative Price


Department
History
Course Code
HIS109Y1
Professor
Kenneth Bartlett
Lecture
1

This preview shows half of the first page. to view the full 3 pages of the document.
ECONOMICS 105: Sept 21st
1
Chapter One
Scarcity and Choices
Idea that there is’t eough to go aroud to satisf eeds.
Problem of scarcity arises because of limited money, time and energy.
Opportunity Cost
Because of scarcity, every choice involves a trade off you have to give something up to get something
else.
The true cost of any choice is the opportunity cost the cost of the best alternative given up.
For a smart choice, the value of what you get must be greater than the value of what you give up.
Positive Statements:
About what is;
Can be evaluated as true or false by checking the facts.
Normative Statements:
About what you believe should be;
Involve value judgements.
Cannot be factually checked.
For any Policy:
Always weigh benefits against opportunity costs.
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version