ECON 2013 Lecture Notes - Lecture 1: Marginal Utility, Opportunity Cost, Marginal Cost
16 Sep 2016
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Document Summary
Economics will help us to understand the world better. 3 key economic ideas: people are rational: rational: using all available information to achieve your goals. The best way to make or keep your workers happy is to provides incentives in order to maximize the production of their company. If you are a good driver, you will pay less. People that buy health insurance are usually people who do not take good care of themselves. All decisions are made based on the small decisions. As long as the marginal benefit is greater than the marginal cost, you will buy it. Comparing mc and mb is known as marginal analysis. Scarcity: a situation in which unlimited wants exceed the limited resources available to fulfill those wants. Ie: time, money economics is the study of these choices. Economists study these choices using economic models, simplified versions of reality used to analyze real-world economic applications.
