ECON 2010 Lecture Notes - Lecture 1: Opportunity Cost, Econometrics, Market Power

• School: CU-Boulder
• Department: Economics
• Course: ECON 2010
• Professor: Charlesde Bartolome

Document Summary

Learn about what happens when a country uses an exchange system based on markets: what output is produced. What inputs get used up to produce it. When good changes hands at voluntarily agreed prices. Goods market: firms produce goods and ships goods to household and the household voluntarily says i want to buy this good at x agreed upon price. Resource market: household has the resources and capital - gives it to firm under terms and conditions at a voluntarily agreed upon price. Some countries just say you are going to work here and you are going to be paid this much ex. Why us won the cold war - had better system . Start with decisions of many small agents (households and firms) see how these come together to determine what happens. How total levels of output, unemployment, inflation and trade levels are related.