March 14, 2014
A college degree is one that Americans all across the nation will agree that can only lead you to a
better life. Attaining this one piece of information can lead to more job opportunities and even a
higher base salary.
An economic model is a simplified version of reality that allows us to observe, understand, and make
predictions about economic behavior.
Reasons to use models:
o Intelligent citizen of the world
New way of thinking
essentially, all models are wrong, b
The quantity demanded of a good or service is the quantity buyers are willing and able to buy at a
particular price during a particular period, all other things unchanged (ceteris paribus).
A demand schedule is a table that shows the quantities of a good
What determines the quantity of a good or service sellers are willing to offer for sale?
o A higher price is likely to induce sellers to offer a greater quantity of a good or service, and vice
o Production cost, including:
Prices of factors used
Adverse selection is caused by asymmetric information (when buyer and sellers in a market have
Consumers know their risk, while insures must assume everyone is high risk. As a result, low risk
consumers leave th
Externalities occur when cost or benefits accrue to a person or persons who are not
involved in the decision making process.
A negative externality involves a third party cost.
o Occur when a decision or activity imposes costs on anyone not involved in
Tydings 4106C, x53476
ECON 111, Sections 0101-0106
Thinking Like an Economist
Syllabus and Reading List: Thinking Like an Economist
The theory of economics does not furnish a body of settled conclusions
immediately applicable to po
February 28, 2014
What would happen if there were not enough educators to teach the desiring youth who craved an
education? Their desire to learn would go untouched of course. Teachers are an intricate role in world of
April 4, 2014
Writing Assignment 4
Which college will you go to in the future? This is a question that many if not all high school
students will encounter in their lifetime. Many people are unsure of what school they want to attend l
How to Escape the Community College Trap
When I get a degree, I will make a bigger salary, is a quote that can be
frequently heard on an Education Connection commercial. This quote contains the logic
fueled by many Americans today that conti
The prisoners dilemma is a canonical example of a game analyzed in game theory that shows why two
individuals might not cooperate, even if it appears that it is their best interests to do so.
NASH Equilibrium: each party picked the optimal choice given t