CAS EC 101 Lecture Notes - Lecture 1: Seat Belt, Marginal Cost, Opportunity Cost
21 views2 pages
5 Oct 2016
School
Department
Course
Professor
tealzebra3 and 39199 others unlocked
56
CAS EC 101 Full Course Notes
Verified Note
56 documents
Document Summary
How people make decisions: people face trade offs(always) The only thing that"s free is something has no value. To get something we like, we usually have to give up something. The value of the alternative is the value of the object. While making decisions we have to trade off one goal against another. Most people think about what they are doing but the economist thinks about what you"re not doing. Efficiency would be making the economy pie as big as possible while equality refers to how the pie is sliced up: the cost of something is what you give to get it. Opportunity cost: whatever must be given up to obtain some item. While making decisions people compare the cost with benefits of the alternative, i. e. find out the net benefit of any decision. The net benefit includes the consideration of opportunity cost: rational people think at the margin.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers