ECON 1201 Lecture Notes - Lecture 15: Normal Distribution, Marginal Revenue, Behavioral Economics
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Chapter 1 (least amount of questions, about 2-3) Understand concepts, not memorize will be our unspoken assumptions. Economic problems (how we cope with scarcity) Wants are greater than needs causes a constant scarcity of everything. Causes people to make choices (opportunity cost) Overly simplistic stories to illustrate how things work makes sense and can expand to bigger situation. Chapter 2 (least amount of questions, about 4-5) Comparative advantage drives/determine trade (what to specialize in) (allows consumer to pay less) Absolute advantage refers to size of economy. Chapter 3 (a lot of questions, about 14) What the laws of demand and supply. Consumer surplus - left of demand and above price. Producer surplus - left of supply and below price. The combined surplus of producer and consumer. Used to measure the benefits and efficiency of the market. Uses consumer surplus to show the impact government has on the market.
