Economics 1021A/B Lecture Notes - Lecture 2: Marginal Utility, Capital Accumulation, Marginal Cost

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Bruce Hammond

Document Summary

Too much good y point of at locative efficiency l. In our standard of living but production does. Noi possibilities overcome scarcity or avoid opportunity cost. Technological change : development of new goods and of better ways of producing goods and services accumulation growth of capital resources human capital. Comparative advantage : if a one good or a few goods person can perform the activity at a lower opportunity cost than anyone else. Absolute advantage : a person who is more productive than others ex compares production per hour. 15 produces at salads t salad an per. Achieving gains from trade they both specialize and buy from each other. Central economic planning and preferences , so production works ends. Decentralized coordination works best and needs badly because economic planners don"t know people "s production possibilities up inside the. Ppf and four the wrong things complementary are produced . social institutions.