Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

econ sept 11
chapter 1
slide 1
- just 7 principles, last 3 are for macro
- definition of economics - peoples unlimited wants
- scarcity definition
- resources - anything we use to produce something else
- land, labour, physical capital - machinery, equipment
slide 2
- microeconomics - “mikros” - little or small, how households and firms make decisions and how
they interact with one another in different types of markets
- macroeconomics - “makros” - large or big, trends that affect economy as a whole (inflation,
economic growth)
subcategories
1) how people make decisions
2) how people interact
3) how the economy works as a whole (in macro, not this course)
slide 3
1
...
the cost of something is what you give up to get it
- OPPORTUNITY COST
- when considering opportunity costs you consider the cost of the best forgone alternative
- 2 COSTS
- explicit costs (direct outlay of money)
- implicit costs (don’t pay money)
- explicit costs + implicit costs = opportunity costs
slides 4+5
examples of explicit costs and best forgone alternative
- total OC of attending MAC = 13K (explicit) + 28K (implicit) = 41K
- double counting
slide 6
3
...
should i study one extra hour for the exam
- marginal thinking is per unit

slide 7
- MB > MC
- one more unit benefits the profit, the firm will produce one more
slide 8
4
...
seatbelt laws
slide 9
How people interact
5
...
ontario manufacturing has been declining in the last 20 years
...
now we purchase electronics overseas since it
is cheaper to purchase there, consumers benefit from this due to less price
...
however, many lost their jobs, yet this cost <
benefits
...
markets are a good way to organize economic activity
- online market, eBay, amazon, kijiji
- not up to the government, they dont control our decisions, little regulation of govt
- free markets (market economy)
slide 11
- invisible hand
- all of us are guided, telling households and consumers how much to buy/pay, telling firms
how much to produce
- if everyone is greedy and looks out for themselves, optimal results are made
slide 12
7

---