FASH 229 Lecture Notes - Lecture 2: Psychoactive Drug, Multilateral Trade Negotiations, North American Free Trade Agreement
Document Summary
Total welfare sum of the values assigned to items. To understand the economic notion of gains available from trade- by participating. In a voluntary transaction both parties can gain. Relative value in voluntary exchange both parties gain more than they give up: a method of determining an asset"s value that takes into account the value of similar assets. The value of (cid:498)things(cid:499) are measured against the value of other similar (cid:498)things(cid:499) To understand how in (cid:498)free trade(cid:499) different people place different values on items: ex: value can be in terms of (cid:498)fun(cid:499) or simply (cid:498)tradability(cid:499) Weighing the expected benefits against the expected costs. Distance, language, customs, social setting, political, etc. all have an impact on trade, often in form of miscommunication. Code"s- break language barriers, add a further level of classification. Devise a system(s) to classify goods (national and international level) Economists use the bot as a measure of the relative strength of a country"s economy.
