ECON 102 Lecture Notes - Lecture 24: Rofecoxib, Core Inflation, Hired Armed Vessels
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ECON 102 Full Course Notes
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Services: prices rise when the government prints too much money, society faces a short-run tradeoff between inflation and unemployment, people face tradeoffs. Vioxx: 9/2004 merck withdrew b/c study showed strokes and heart attacks. Economists worried that drugs could be too safe. - m/drug: drug lag, drug loss, the cost of something is what you give up to get it. Cost of college tuition, room & board, books: lost job income is also a cost, one thing in the list above is not a cost of college. Compare the 2 options, cancelling out things that are the same. College enrollment and the unemployment rate (when unemployment rate is high, college enrollment is higher than usual because of opportunity cost: rational people think at the margin. Marginal thinking is just considering two options that are close together: people respond to incentives. 1787, british gov"t had hired ship captain so transport felons to australia.
