ECON 1115 Lecture Notes - Lecture 1: Market System, Opportunity Cost
21 Jan 2017
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Tradition does not take opportunity cost into account. Fireworks during 4th of july celebrations were cut due opportunity cost. City governments had to cut firework costs to avoid laying off people. Children get saved as they have futures and women second to take care of them. Tradition is the reason why lifeboat seats are not sold. Government uses of gdp in the us. They spend this money on education, national defence, communication, transportation and infrastructure. We allow the government to decide how much money to allot for each good that the government provides. This comes at the cost of rules and regulatio(cid:374)s i(cid:374) pla(cid:272)e. the go(cid:448)er(cid:374)(cid:373)e(cid:374)t"s (cid:373)ai(cid:374) purpose is so(cid:272)ial (cid:449)elfare a(cid:374)d pro(cid:448)ide safet(cid:455) a(cid:374)d security to the people. Benefit of the market system it only takes opportunity cost into account, and is therefore the most effi(cid:272)ie(cid:374)t. the (cid:373)arket s(cid:455)ste(cid:373)/(cid:272)apitalis(cid:373)"s o(cid:271)je(cid:272)ti(cid:448)e is to (cid:373)a(cid:454)i(cid:373)ize profit. Firms do not care for social welfare (layoffs when profits are not met).
