CAS EC 101 Lecture Notes - Lecture 1: Stock Market Crash, Opportunity Cost, Dont

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

Document Summary

No: by following the goods, we see that material wealth of society did not change b. i. Investors revise their beliefs about its value which is bad for sellers, but good for buyers because these goods and services become cheap: because the value goes down, does not necessarily mean quality goes down too. c. i. In a bad real estate market, a house could be worth 500,000 one day and. 300,000 the next (the house did not change in one day) d. Law makes it difficult for landlords to collect rent which would give them the incentive not to rent to the elderly: protecting trees: suppose congress outlaws the use of paper b. i. Companies would no longer farm trees for the paper, so the number of trees would be uncertain since wild trees are not harvested for paper: protecting chickens: illegal to eat chicken c. i.