Lecture # 9 Comparative Advantage
When we introduce the idea of Comparative Advantage, we're starting to talk about Production.
Comparative Advantage: Individuals can produce more by specializing in their least cost activities.
Who has the c
Lecture # 22 Candide A last chance to preach.
Do you remember on the first day when I said:
This will either be the best or worst course you ever take. Because it is a course about thinking like an economist not a course about economics.
Lecture # 5 The Law of Demand The Law of Demand is the most powerful idea in social science. We can graph a demand curve:
A Brief Technical Digression: Discrete versus Continuous Variables.
Technical digression cont. Technical digression con
Lecture # 6 More on Demand
Lets consider the demand for a good X in its functional form. Own Price Elasticity -this is the most important for us. Exx > -1 Exx < -1 Exx = -1
means elasticity is inelastic. means elasticity is elasti
Lecture # 7 Demand, Exchange, Equilibrium The Full Price
- the full cost of an item may include more than the nominal price. - the full price of a good includes the cost of the time. - for some goods, the time component may be the most impor
Lecture # 11 The Competitive Firm
The last step in completing our model is to specify a type of market behavior on the part of firms. We are going to start by assuming firms are competitive.
The Competitive Firm: c. Each firm takes the price
Lecture # 13 Choice Over Time And the Interest Rate: The Microfoundations of Macroeconomics.
Interest Rates For some reason we think these are magical or mystical.
Probably because we spend so much time plotting and reporting them.
Lecture # 19 Transaction Cost Economics Continued
So transaction costs are the costs of establishing and maintaining economic property rights. So what? This leads to our seventh and final economic principle:
If TC = 0 organization doesnt mat
Lecture # 21 Economic Organization: Contracts and Markets
Market Enforced Product Quality How do you know, when you buy a That its actually going to be a Snickers bar and a good one? If it was bad, would you take the company to Your worship
1 What kind of transportation u used when u go
2 How long do u spend on the road?
3 Do u like the bus survice ?
4 How long will u wait for vehicle?
5 How much will u pay for ?
on foot 2
bus and skytrain 9
Lecture # 8 Opportunity Cost
What is Cost?
- this is one of the most useful ideas in economics but it is one of the least understood.
The most common notion of cost is . historical cost. Historical (Accounting) Cost: What you paid for somet
Lecture # 4 Diminishing Marginal Value The Third Principle in Economics is Diminishing Marginal Value It doesnt matter what the good, the more you have the less youre willing to pay for more.
-your boyfriend/girlfriend? - child? -water?
Lecture # 20 Economic Organization
The last lecture argued that PR systems were designed to mitigate TC problems. We can think of a spectrum of organizations.
Today we'll start at the left end of the spectrum and work our way over.
Why is pr
Lecture # 14 The Labor Market
We've already discussed how the demand for labor comes from the marginal product of labor.
This is often called a "derived demand" because it follows from the demand for the output.
The supply of labor comes fro
Lecture # 15 Price Searching
Here we are going to make another minor adjustment to our model. Rather than assume firms face a perfectly elastic (flat) demand curve, now we assume firms face a downward sloping demand. Why might that be? a. Pe
Economics 103 Lecture #1 Administration: About Me
Name Doug Allen Office: WMX 2670 Phone: 3445 Hours: After Lecture/ Appointment
- I cant sign you in or out. - Tutorial swaps must be done by 3rd week.
Administration: About the Web Page
Lecture # 15 Price Searching Continued.
The price searching model has one interesting twist to it. At P*, Q* there is a DWL. Why?
Why would a firm or customers allow money to sit on the table? There is something wrong here, this can't be an
Lecture # 2 Maximization The fundamental idea in economics has to do with motivation. - why do people do the things they do?
This is what makes an argument economic - all behavior is interpreted through this principle. - it doesnt matter wha
Lecture # 17 Interaction Among the Few
To this point we've assumed: 1. Firms were so small relative to the market they could ignore other firms. 2. Firms were simple price takers and didn't need to take into account the actions of others. Bu
Lecture # 10 Costs of Production
When we introduce the idea of Comparative Advantage, were talking about different people or different inputs having different costs. Now we want to look at a different situation: the same input may experience
Lecture # 18 Transaction Cost Economics
We've examined a powerful model, but there are some unanswered questions. When I go skiing at Cypress Bowl, how come I face
A line up means there is excess demand. Why does the price not increase?
Lecture # 3 Substitution The Second Economic Principle in Economics is Substitution Another way of stating the principle of substitution is: Everyone has their price Or Nothing is sacred Again, like maximization, this assumption is universal
Lecture # 12 Applications of the Neoclassical Model.
Equilibrium . one more time . with feeling! Think of what you've learned so far: -maximization. -demand . individual and market. -supply . firm and market. - CS and PS. -and the idea that