ECON 2105 Lecture Notes - Lecture 1: Ceteris Paribus, Universal Health Care, Price Ceiling
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Econ 2105 spring 2016 test 1. Economics- the study of how society allocates its scarce resources: scarcity = limited; however, people have to want the item in order for it to be considered scarce. War on terror is typically a republican backed policy. Trade off comes in because if you want more doctors, then you would have less soldiers to fight: ex 2) equality vs. Principle #2- opportunity cost: opportunity cost- the value of the next best thing or the thing you gave up, ex 1) thing. *the opportunity cost is not sleep itself, but the value of the sleep: ex 2) you pay to go to a lady gaga concert, and go. The opportunity cost equals the value of the - meaning it depends on what the value of the other options of what you could have spent the on.