econ 211 lecture 1

econ 211 lecture 1 - Econ 211 Lecture 1 Patrick McLaughlin...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 211 Lecture 1 Patrick McLaughlin Scarcity -TANSTAAFL: There ain’t no such thing as a free lunch. (Robert Heinlein, The Moon is a Harsh Mistress , great book, highly recommended) -Nullum gratuitum prandium Scarce good (economic good) – something must be given up to obtain it. i.e. choices must be made. E.g.: Seats in my Econ 211 class are scarce. More people wanted in than could physically fit in the room. This scarcity results in a conflict between individuals (economic agents). The process that resolves these conflicts is competition. In the case of seats, the competition has multiple levels: seniority and time-cost. Conflict resolution leads to discrimination (choices). Choices cost opportunity cost Opportunity cost – the highest valued foregone alternative, or the “best thing given up.” NOT ALL THINGS GIVEN UP, just the best one. Economics is the study of the choices people make in the presence of scarcity. Microeconomics – study of choices that individuals and firms make. Example of applied microeconomics: if the government raises the tax rate on cigarettes, will that have any effect on the quantity of cigarettes consumed by individuals, and how much? Why are people getting married at a later age than in the 20 th century? Macroeconomics – study of the performance of national economies.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/09/2008 for the course ECON 211 taught by Professor Johnson during the Spring '07 term at Clemson.

Page1 / 3

econ 211 lecture 1 - Econ 211 Lecture 1 Patrick McLaughlin...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online