ECON 111 Lecture Notes - Lecture 1: International Trade, Fiscal Policy, Marginal Cost
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ECON 111 Full Course Notes
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Deals with the choices of the individual units such as individuals, households, firms, industries, etc . Deals at the aggregate level or the economy as a whole. Choices are based on expected or desired outcome. Helps us to reach optimal outcome based on the information. Accept choice as long as marginal benefit is greater than or equal to marginal cost. Making a choice forces us to give up something. Next best thing that is given up to make a particular choice. All else equal or nothing more than model variables are changing. Reason for change is something outside the model. Changes viewed to change in some other variable within the model. Need to have a model to be able to decipher dependence or independence. All else equal , combination of two goods that can be consumed. (price of the good x-axis)/(price of good on y-axis) Measuring quality of labor includes education, training, and.