ECON 201 Lecture Notes - Lecture 2: Fallacy, Trans-Pacific Partnership
Document Summary
Meaning that our decisions can be changed by different incentives. New policy find what will cost to fund this. When gas prices rise consumers buy more hybrid cars and fewer gas guzzling suvs. Incentives: if lawmakers want to accomplish something they need to make incentives. Tpp trade deal (trans pacific partnership) environmental. The fundamental idea is what each person has his or her own unique talent. Trade would make everyone better off: specialize the unique talent. People can focus and become specialized in what they do best, competition results in gains from trading. Trade between nations can harm some individuals: fallacy of composition. Something that is true for a group may not be true for the full population. Principle 6: markets are usually a good way to organize economic activity. No need for physical market- we can do this on the internet 24 hours open rather than 9-5 job.
