ECON-2000 Lecture Notes - Lecture 1: Economic Surplus, Demand Curve, Opportunity Cost
Document Summary
Know the predictions and changes that can happen with figure 27. 10 on page 601. Big idea two: good institutions align self-interest with the social interest. Opportunity cost: opportunity cost, the opportunity cost of a choice is the value of the opportunities lost. Big idea five: tampering with the laws of supply and demand has consequences. Big idea six: the importance of wealth and economic growth. Big idea eight: economic booms and busts cannot be avoided but can be moderated. Big idea nine: prices rise when the government prints too much money. Big idea ten: central banking is a hard job. The demand curve for oil: demand curve, a function that shows the quantity demanded at different prices, quantity demanded, the quantity that buyers are willing and able to buy at a particular price. Income: population, price of substitutes, price of complements, expectations, tastes. Income: normal good, a good for which demand increases when income increases.
