ECON 101 Lecture Notes - Lecture 2: Totalitarianism, Common-Pool Resource

132 views3 pages

Document Summary

Chapter two - markets and society explanation of markets. Without households, the private sector would not exist and vice versa. Arti cially scare goods (cable tv, department store, cinemas, etc) 1 excludable - you have to be able to afford it. Rival - another consumer can prevent you from obtaining the good. Rival - example: sh are scarce - competition between shermen . 3 excludable - have to be able to afford it. Non-rival - no competition for air or news consumption. *markets can only handle scenario 1, scenarios 2, 3, and 4 are extremely dif cult to be maintained by markets. A mechanism - price goes up, you buy less

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers