CAS EC 101 Lecture Notes - Opportunity Cost

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

Document Summary

Thinking like an economist lecture 1 manove: think about the goods (not the money) U. s. stock market lost 22. 6% of its value. Did factories disappear on black monday: no. Did the ceo"s desk vanish from under his nose: no. The material wealth of society did not change. But investors revised their beliefs about its value downwards. This is bad for sellers of assets (like houses). But it may be good for buyers of assets, who can now get them for cheap. Effects on the production of goods and services?: everything has a cost. The cost of something is what you give up to get it. Ex: the cost of an a on an econ exam: an evening of fun with your friends , because you have to study instead. Ex: the cost of having kids: the freedom to do what you want when you want. What is the difference between the cost of something and its.