ECON 1050 Chapter Notes - Chapter whole book : Infant Industry Argument, Comparative Advantage, Canadian Airways
13 Oct 2017
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Chapter 1: it"s all about scarcity: scarcity is fundamentally a relative term rather than an absolute one, scarcity: resources available (limited) to potential recipients, to determine who gets the resources you can do any of the following: Queuing, lottery, favouritism or nepotism, tournament, social norms, market, rationing, Change technology and use existing inputs better. Administered effective gov programs: in developing countries the best thing to spend money on is agricultural research, education and roads, you need inputs to make outputs. Economies of scale: as a company produces more and more of something the avg cost goes down. Variety of the same thing: suvs by merc, beamer, porsche, audi: protectionism: tries to eliminate any comparative advantage of another country by levelling the playing eld. Quotas so only a limited amount can enter the country. Rules and regulations against selling in a country.
