ECON-101 Lecture Notes - Lecture 2: Kijiji, Opportunity Cost, Positive Statement
20 Dec 2016
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Don"t forget to do bridge questions for participation marks on there. Note that opportunity cost isn"t only about money, it considers all aspects. Principle #4: the motivation, as to whether or not you"ll get a reward or punishment. eg. drinking and driving, weed in econ. etc. If prices go up, less people will buy the item. Gas goes up, then less people buy gas-consuming cars. Economics look at incentives and how they affect peoples decisions. Note there are more than one incentive eg. for smoking you could stop/slow down due to taxes, but also because of public campaigns etc Principle #5: trade has both sides winning, its not like sports teams where they have one winner and one loser. Trade is voluntary, so its only rational that both sides are winning. 10$ you wouldn"t be engaging with the coffee shop, therefore no trade. Principle #6: keyword; usually markets are anywhere that buyers and sellers can meet (eg. kijiji and amazon).
