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Lecture 2 Notes

Lecture 2 Notes - you must use government services...

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Econ 201 Lecture 2 Notes SIGN GUESTBOOK www.people.virginia.edu/~kge8z/guestbook/sign.php
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http://www.csun.edu/~dgw61315/dgwhayek.html - compared selma and Fredrick hayek Econ: The production possiblities curve illustrates opportunity cost of choice in goods Inside the ppc All resources are not utilzed Outside the ppc unattainable given current resources On the ppc – a place of full efficiency where a society must choose to dedicate their resources toward Companies must forgo opportunities to do so Three fundamental econ problems answered by: Tradition – oldest and most used Includes the tradition of employment Lived in if you live the way your parents did Central planning or (“political planning”) Commands given by someone or something in higher power Distribution decided by those in command Includes dictatorships such as Cuba, where to get access to goods and services
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Unformatted text preview: you must use government services Market (free enterprise, capitalism) Gov’t uses indirect means to influence economic planning taxation and subsidizing FREE CHOICE Workin for WAGES ** People cant be “tied” to a job no slavery etc. Markets for Goods and Services ** People have choices Property rights ** Right to consume or use good so long as it doesn’t harm others Include the right to exclude others from using property Fundamental Questions What goods are going to be produced – voted on by citizens with dollars Farming – how will land be cultivated Goods allocated to people who have financial means to pay market price for goods Scarcity – we must choose how to utilize our resources How to allocate given the opportunity cost Guns and Butter = analytical proxies for civilian and war goods...
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