ECON 2143 Lecture Notes - Lecture 1: Opportunity Cost, Relativism
1 Sep 2016
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4. people respond to incentives-30% forever 21 gives incentives to go spend money. 5. trade makes people better off-2 kinds of fruit if you trade and you wont just have your apples, you will have apples+ bananas. 6. markets are a good way to organize economic activity-buyers+ sellers can meet up and come to an agreement on a price. Pin goes up, government wanted everyone to be able to buy it so they brought the price down to 300$ 8. standard living depends on ability to produce-first would countries productivity rate is high, india productivity rate is low. 9. prices rise when gov. prints too much money-lots of money=charge higher price. Economics-study of scarcity not everyone can have something. Trade off-cant have both, choose one or the other. Opportunity cost-(ex:money) measure cost of trade off, measured as op. cost. Movie v. getting nails done, money is not what you have forgone. Amount of the second best option given up for the first.
