Lecture 1

Lecture 1 - earnings: $0 Cost of Staying Home &...

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Intro to ECON Help sessions: MTWR (6-8pm) CHAPTER ONE Everyone faces scarcity even billionaires. Time, money, resources, etc are all scarce. Therefore, we face choices and these choices are made based on incentives. Game theory is an important part of microeconomics. Cost of college: tuition: $3,000
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Unformatted text preview: earnings: $0 Cost of Staying Home & Working tuition: $0 r & b: $10 k earnings: $30k Opportunity Cost of college: Tuition: $3k r & b: 2k (12-10) earnings: $30k Opp. Cost = $35k Benefits of going to college outweigh the opportunity costs. Marginal benefit > marginal cost then you will do it...
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