ECON 101 Lecture Notes - Lecture 1: Opportunity Cost, Economic Surplus, Demand Curve

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: Ronald C Caldwell

Document Summary

The opportunity to see a different movie at that time. The ability to spend that money on [dinner: ex: for bday choose to use it instead of putting it in savings account. Giving up interest from putting it in bank account: ex: gov spends less on affordable housing. Positive vs normative econ: positive = looks objectively at econ issues (uses verifiable facts, normative = looks at issues that involve value judgements/onions. The retired pop of mexico has increased over 10 years - positive. More african nations will qualify for the world cup next time positive (can be proved eventually) Moon is made of cheese positive (not true but can still be proven) Marginal value (mv) how much do you get (how much value) from an additional unit of a good. Total value (tv) what you"re willing to give up (pay) for a given amount of goods (the value from all of that good)