Lecture 1 - Econ 282: Lecture 1 January 5, 2012 Today's...

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January 5, 2012 Econ 282: Lecture 1
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Today's Lecture Brief review of key economics principles A few Examples of Sports Economics
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What Is Economics?
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What is Economics? Economics is the study of how people make choices to cope with scarcity (from Bade and Parkin)
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What is Meant by “People?”
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What is Meant by “People?” Individuals – you and I – often referred to as Consumers Firms – often called producers Government Acts as consumer and producer Also intervenes in the consumer-producer relationship Often unclear what government “wants”
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What is Meant by Scarcity?
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What is Meant by Scarcity? Scarcity occurs when wants exceed available resources to fulfill wants E.g. Hours in a day Can there be a scarcity of garbage? Can there be a scarcity of internet videos? Scarcity implies that choices must be made People must choose which and how much of each want gets fulfilled
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Opportunity Cost When a choice is made opportunities disappear Buying a Coffee for $2 removes the possibility that I can spend those $2 on ANYTHING else Economists call the value of the BEST forgone alternative Opportunity Cost What is the Opportunity cost of being here today?
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Decision Making Consumers maximize Utility Utility is the gain associated from consuming goods and services Firms maximize Profits Profit is total revenue less total costs Decisions are made at the margin Compare additional (marginal) costs and benefits
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This note was uploaded on 03/06/2012 for the course ECON 282 taught by Professor Benjaminmcnamee during the Spring '12 term at Simon Fraser.

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Lecture 1 - Econ 282: Lecture 1 January 5, 2012 Today's...

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