01:220:102 Lecture 3: Class Notes up through 100418
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01:220:102 Full Course Notes
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Document Summary
Intro to micro economics: all choices are made based on incentives and have opportunity cost, true cost = measured by opportunity cost, economics. Is derived from the greek word okionomia which means household management or. Free market vs. socialism: us currently in hybrid market system, socialism command economy, communist or socialism (tenets, government ownership (owns everything, companies, houses, etc , absence of private property, no competition, no market discipline. Includes intellectual property: no incentive, government owns everything and dictates all, production goals, allocation of resources, wages and prices. In command economy no market discpline: communism, run by military, forces socialism economic system on citizens, communism vs. socialism, systemic elimination of private sector, example venezuela forcing system on their citizens. Lose profit no profit motive in socialism economy. Is a profit -loss free market: fear of. Incentive to be efficient/want to do more: tenet define principle or belief , especially one of the main principles of a religion or philosophy.
