Economics 012 1-18-2008

Economics 012 1-18-2008 - tickets think in terms of what...

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Economics 012—1/18/2008—Discussion - Public goods: non-rival, non-excludable - Opportunity costs: part of implicit costs o What you give up to get/do something else - Comparative advantage: o Sally is better than Alfie at both singing and farming but is exceptional at singing. Alfie is a better farmer than singing. Even though she is better at farming, she should sing and let him farm - There are mutual benefits from trade - Thinking at the margin: instead of averaging costs (ex: airline
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Unformatted text preview: tickets) think in terms of what extra costs you need to cover o Charge less=make more-Price ceiling: find equilibrium at short side (closer to y-axis)-Price floor: same thing (on top though)-Macro focuses on 3 markets o Labor market—employment, wages o Product market—price, quantity o Capital market—interest rate, amount invested Low inflation rate variation of prices over time Full employment Rapid growth...
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