ECON 003 Lecture Notes - Lecture 2: Uber Eats, Opportunity Cost
Document Summary
Coercion : someone will devote resources to make you worse off if you don"t comply. One person gains at the expense of another. Value of goods = subjective voluntary trade creates value. Channel goods and resources to those who value them most creates value + increases wealth created by a society"s resources. How trade leads to economic progress/standards of living. Gains from specialization and division of labor. People can rely on others for specialized tasks they can"t complete while contributing what they do best to society. More efficient method of production, mass production = cheaper and easier. Creation of wealth: process by which some people become rich will make everybody richer. Transaction costs : time, effort, and other resources needed to search out and complete an exchange. Can be a barrier that prevents a voluntary exchange to happen. Middleman : a person who buys and sells goods or services or arranges trades.
