CAS EC 101 Lecture Notes - Lecture 1: Economic Planning, Market System, Opportunity Cost

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Neil Watson

Document Summary

Isaac bookbinder: central questions of economics, what gets produced? a. i. (soviet union) central planning: government chooses who produces what a. ii. (usa)market system: supply and demand dictate production, how does it get produced? b. i. Lots of labor or primarily machinery? b. i. 1. b. i. 2. Market-dictated by firms who decide which is more profitable: who gets the products? c. i. Should it be a fair system where the employees get cuts of what is made? c. ii. In a market system, the most productive individuals get the most product c. ii. 1. Why do chief executive officers make so much money? c. ii. 1. a. They are responsible for many peoples lives and lots of money: the market system, self interest a. i. Most people look at their own interests to decide what is best for me? : competition keeps everyone in line b. i. Makes it so companies cant charge ridiculous prices for goods b. ii. Even potential competition keeps companies in line c.