ECON 1202 Lecture Notes - Lecture 4: Natural Disaster
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ECON 1202 Full Course Notes
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Document Summary
Outward shifted curve in the ppf represents economic growth. Can shift in one industry by change in one spot. Inward shift- loss of resources, war, natural disaster, disease, collapse of markets. More savings will allow for better future economic growth. Rate of expansion is tied to savings rate. 3 primary markets: goods and services (product) Require private property rights to be protected; need government involvement. Right to use, exclude, transfer: labor (factor, financial (savings and investment) Markets are socially constructed and reflect the cultural and ethical values of a society. 4th and 5th amendment- go(cid:448)er(cid:374)(cid:373)e(cid:374)t (cid:449)ill (cid:374)ot take (cid:862)life, li(cid:271)erty, or property (cid:449)ithout due pro(cid:272)ess of la(cid:449)(cid:863) Trade expands national production: creates valuable incentives. Adam smith and the invisible hand: gets production to those who value it most. Makes buyer and seller better off: trade reduces the cost of production.
