Econ. Recitation Notes

Econ. Recitation Notes - First Recitation 1.30 Markets for...

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Unformatted text preview: 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 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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