EC 111 Lecture Notes - Lecture 2: Ice Cream, Cost, Given Up
20 Sep 2016
School
Department
Course
Professor
Document Summary
Us (most economies in between us and china) china. Workers own the means of production and thus share profits and goods to achieve equality. When people can benefit from others work without working. Means of production are privately owned, and wealth is then redistributed to achieve equality. Household to product markets to firms to resource markets and back to household. Life behind of market economy (more entrepreneurs the better) Exclusive use including the right to buy or sell. The value of the best alternative not chosen when you make a decision. Who can do it more efficiently (less time) Leads to stronger economy with more goods for all. For guns = (40 butter) / (20 guns) = 2 butter per gun. Dollars you spend on the activity + the monetary opportunity cost. David and ben are making ice cream and yogurt.
