ECON 2001.02 Chapter Notes - Chapter 1: Lawn Mower, Marginal Utility, Market Failure

• School: Ohio State University
• Department: Economics
• Course: ECON 2001.02
• Professor: All

Document Summary

Uppose (cid:455)ou are shoppi(cid:374)g for (cid:374)e(cid:449) (cid:272)lothes to (cid:449)ear to jo(cid:271) i(cid:374)ter(cid:448)ie(cid:449)s, (cid:271)ut (cid:455)ou"re o(cid:374) a. Answer: if you are deciding what to buy for a job interview, your want is to buy clothing that looks clean and professional, so you can present the best possible impression to potential employers. Your constraint is the amount of money you can spend on this clothing. A person behaving rationally would buy the nicest clothes they could afford. You are a student with a demanding schedule of classes. You also work part-time and your supervisor allows you to determine your schedule. You need both time to study and time to work. Presumably, you want to do well in school and also make money. You will try to balance your schedule so that you work as much as possible while still having enough time to study and do well in school. that you confront scarcity in your own life.