ECN 340 Study Guide - Comprehensive Final Exam Guide - Winston Ponder, Opportunity Cost, Sexually Transmitted Infection
20 Nov 2018
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There is a tendency to want but there is not enough resources: unlimited desires and limited resources. Thinking about people: focus is the individual, you care most about your satisfaction not because you are selfish but because you want to be happy. In a world of scarcity, an individual is an single analogy because of competition. Insatiability: human beings want more of the things that matter to them. You are insatiable for the things that you personally value. (cid:271)e(cid:272)ause the ri(cid:272)h"s time is more expensive. The cost of getting caught, if religious you would go to hell. But you also need incentives to elicit more supply. Law of demand: strongest possible predictive statement about human behaviour, example: going to church (or any other religious institutions). Individuals consume a product or a service (g and s) until mc = mb. If mb>mc can increase satisfaction by increasing consumption i (cid:449)a(cid:374)t to (cid:862)(cid:272)o(cid:374)su(cid:373)e(cid:863) more of you.
