POLS 489 Lecture Notes - Lecture 2: Median Voter Theorem, Sunk Costs, Factor Endowment
20 Sep 2016
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10 economic claims: supply and demand, sunk costs, a cost that has already been incurred and cannot be recovered. Sunk costs (also known as retrospective costs) are sometimes contrasted with prospective costs, which are future costs that may be incurred or changed if an action is taken. Inflation: a sustained increase in the general price level of goods and services in an economy over a period of time. [1] when the price level rises, each unit of currency buys fewer goods and services. Utility function things that people gain or inherit (payoff/work), what people get out of stuff, benefit you get from a process. In a perfect work, everyone"s vote matters the same. When everyone is perfectly informed then voters are able to vote properly. In the imperfect world, peoples voice and opinions matter or affect more. Because information is costly, people who have more wealth, they are able to influence and change votes easier.
