Econ Recitation Notes 01

Econ Recitation Notes 01 - Phillips Curve expectations +...

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First Recitation 1.30 Markets for goods + services: food, household items, etc. PPF: slope of line = opportunity cost at every point Discrete Choice Example: Can either go to class or not, but cannot go to 1.5 classes (unlike ice- cream scoops) “Trade is good for every country no matter what” Exploitation? Protectionism?  Take gains from trade + re-train people who have been displaced
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Unformatted text preview: Phillips Curve expectations + inflation Inflation: cost of borrowing is positive Tariffs distort equilibrium Utility Curve: Utility Decreases Utility Quantity Law of Diminishing Marginal Benefits : as get more and more of something, marginal returns decrease (utility, or happiness, decreases)...
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This note was uploaded on 04/26/2008 for the course EC 05 taught by Professor Abdullah during the Spring '08 term at Tufts.

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