EC120 Lecture Notes - Lecture 1: Marginal Utility, Opportunity Cost, Market Power
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EC120 Full Course Notes
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Document Summary
Learn that economics is about the allocation of scarce resources. Examine some of the trade-offs that people face. See how use marginal reasoning when making decisions. Consider why trade among people or nations can be good for everyone. Discuss why markets are a good, but not perfect, way to allocate. Learn what determines trends in the overall economy resources. Economy comes from the greek word for one who manages the household . Resources are allocated by millions of households. Economists study how people make decisions (ex. What they buy, how much they work, save and invest in their savings), their actions and trends/forces within the economy (ex. No such thing as a free lunch meaning one has to give up something to get something they want. (ex. Clean environment requires firms to abide to certain laws making them spend money = less investment for them. Thus they need to increase prices and pay lower wages)
