ECON 1101 Lecture Notes - Lecture 2: George P. Shultz, Investment Goods, Marginal Cost
25 Sep 2017
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Econ 1101 lecture 2 intro: what is economics: quotation of the day #1, nothing is less real than realism. It is only by selection, but elimination, by emphasis that we get to the real meaning of things. In the long run, we are all dead. Economists set themselves too east, too useless to task if in tempestuous times they can only tell us when the storm is over the ocean is flat again. Keynes, 1924: quotation #3, a fact without a theory is like a ship without a sail, is like a boat without a rudder, is like a kite without a tail. A fact without a theory is as sad as sad can (cid:271)e, (cid:271)ut if there"s o(cid:374)e thi(cid:374)g (cid:449)orse i(cid:374) this u(cid:374)i(cid:448)erse, it"s theory (cid:449)ithout fa(cid:272)t. Oc rises as investment is greater: efficient production point on the frontier. Information problems: market economy with some regulations) may allocate resources efficiently, but produce very unequal distribution of income.
