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Unformatted text preview: 2 2 Section Notes Tradeo f s January 10 & 11, 2011 1 Class Inform at ion GSI: E v an H errn stad t Email: eherrn st@ u m ich .ed u O ce: O ce Hours: Pools: Tues: 4-5:30 Normal 10-11 Thursdays Lorch 141 O ther K ey Details: 5 Pop Quizzes based on your weekly homework at the beginning of class. Section is intended to quickly review what is taught in lecture, and teach you how to implement in the context of everyday problems. 2 T radeo f s C oncept R eview Economics is about tradeo f s. If you choose to use 1 pound of sugar to produce 10 sodas that means you give up the opportunity to use that pound of sugar to produce 20 candy bars. This is what we call an opportunity cost. An opportunity cost is what you give up of good X in order to consume Y. Opportunity cost for 1 soda = 2 candy bars Opportunity cost for 1 candy bar = 1 sodas In economics, we often restrict our attention to only two goods. Why?...
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- Winter '11