ECON 2010 Lecture Notes - Lecture 31: Indifference Curve, Marginal Utility, Glasser'S Choice Theory
3 Jan 2016
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Countries that are better at everything should still trade. Winners tend to be consumers, losers tend to be producers: are losers compensated when technological change, no, when technology makes a business more effective occurs? the losers are not compensated. Infant-industry (protection of industries: be wary of picking winners. Choose the amount you want to buy at a given price. Ex: go into a grocery store with 20$ and assume you are going to spend it all. What the prices of all the goods are. Goal: maximize the value you get out of the goods you purchase. In econ speak; we say a good gives you utility. Ex: meat gives you more utility than cereal. You like cereal, but you can do a lot more with meat and enjoy the taste more. When we go into the grocery store, we are trying to maximize our utility from the goods we purchase.
