Unformatted text preview: health. Notice that I wrote “health” and not “health care.” To take another example, economic analysis can also be used to analyze the war on drugs without ever mentioning the word “price.” Instead what is important is “opportunity cost” – what we have to give up when we make a choice. In some American cities, police officers are so busy preparing prosecutions that they don’t have time to respond to 911 calls. Why? Because the politicians chose to put as many people in jail as possible, they actually had to forgo law and order. Studying economics will help you understand the nature of trade-offs that you face in everyday life. If you spend more time studying economics, you’ll be less likely to make decisions that are as stupid as the ones our politicians have made and more likely to make rational decisions. Page 2...
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.
- Fall '10
- Supply And Demand