{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

lecture 2 - LECTURE 2 INTRODUCTION(cont Eleven Big Ideas...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
2010: LECTURE 2 1 LECTURE 2: INTRODUCTION (cont) Eleven Big Ideas Scarcity Trade-off Opportunity Cost Social Science Mankiw: Chapter 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2010: LECTURE 2 2 ELEVEN BIG IDEAS FOR BEYOND THE FINAL 0. Things are scarce . 1. People face trade-offs . To get something, have to give up (trade-off) something. Go swimming, have to give up (trade-off) climbing...
Image of page 2
2010: LECTURE 2 3 2. Cost of something is what you have to give up - opportunity cost. Cost of CU education. If out-of-state student and alternative is own-state univ. CU tuition $ 80 000 less own-state univ. 20 000 opportunity cost 60 000 If in-state student and alternative is working: CU tuition $ 20 000 plus earnings given up 80 000 opportunity cost 100 000 3. Most decisions can be broken down into marginal decisions. Not decide between “never eat out” or “always eat out”, but “do I want to eat out one more time?”
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon