CAS EC 101 Lecture Notes - Perfect Competition, Bitcoin, Commodity Money

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Michael Manove

Document Summary

But selling and buying require a medium of exchange: money: selling means obtaining money in exchange for goods, buying means obtaining a good in exchange for money. Fiat money: has no value of its own, declared to be money by the state or other institution, often exists only as paper (currency),, or as intangible notations in computer memory banks. Why do people accept paper money in return for valuable goods and services: we accept paper money from others, because, bitcoin ? . What would happen if i told you Competition is the driving force of any free- market economic system. The analysis of competition will occupy a major part of this course. Our analysis of competition will focus on selling and buying rather than on barter. And a very important feature of selling and buying is the determination of prices. Prices are defined when money is used for selling and buying.