Econ Zam 1 Notes

Econ Zam 1 Notes - Constrained possibilities curve: when...

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Constrained possibilities curve: when you make a choice, there is always something  foregone. Choice possibility frontier: no matter the combination, if you are on that line, you are  taking a full load (in this case, 15 hours) Capital Choice: a choice that is made in the long term, about the future, in order to do  something else. Art vs. Econ choice can be a choice between consumption and capital or the present and  the future. Space beyond the choice possibility frontier is the impossibility space A preference function (a vector drawn through the origin) will but the econ/art choice  proportionally. Zero Sum Game: Gains + Losses=0 o One team wins when the other teams lose Positive Sum Game: Gains + Losses >0 o Should always be looking for positive sum moves o If you end up with positive, then you will be better off Negative Sum Game: Gains + Losses <0 o War is a good example o You may 'win' the war, but the losses still outweigh the gains Economic growth is a function of the 'nerd' intensity of the original choice
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Consumption vs. Capital o Production possibility frontier o Production possibilities curve  J-Theory of Revolution o o Want increases faster than the amt you can get increases Law of Diminishing Marginal Returns o Input vs. Output o Empirical Question: The answer requires some evidence of some kind o A Priori Question: The answer is self-evident
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Econ Zam 1 Notes - Constrained possibilities curve: when...

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