ECON 2010 Lecture Notes - Lecture 3: Invisible Hand, Vise, Vending Machine
20 Nov 2017
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Rational behavior or optimizing behavior means maximizing utility. After first test, good time to read the mystery of the invisible hand . Most are short answer, solve a problem using economic analysis. If he doesn"t ask for explanation, don"t write explanation. If you can answer in a few words, do it. Understand vocabulary, pay attention to language of economics. Not a race against the clock, take your time. Imagine you go to a restaurant, you are on the demand side of the market (consumer) As a rational consumer, you carefully think about what you order, concerning both benefits and costs. Go to a restaurant with 2 other people, but you"re the only one eating, but now your neighbor (doctor) tells you what to get. When waitress comes with check, she asks who pays for it both you and neighbor who ordered for you say that the 3rd person should pay for it. (like a health insurance or gov"t)
