ECON 1 Lecture Notes - Lecture 1: Comparative Advantage, Price System, Forward Price
Document Summary
In war resources are wasted on weapons instead of devoting resources to usable goods. No area in the county has to do without commodities. Forward price the prediction of price of a good. Motivates or demotivates the production of goods based on the change of the forward price. No time period ever has to do without commodities. The price of x goes up but only has to pay less than its actual value. The price of x goes down for the producer becomes richer.
