ENGR 310 Chapter Notes - Chapter 1: Influenza Vaccine, Market Failure, Absolute Advantage
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2. absolute advantage = one agent can simply produce more than other agents. comparative advantage = one agent can produce a good at lower. Exam on thursday: each student should bring: a pencil (not an ink pen), a form. 882-e green scantron, calculator (not your cell phone) question: Negative statements (inverse relationship) = 2 variables in opposite dir. Positive relationship (direct relationship) = 2 variables in same direction. Scarcity forces us as individuals and society to make choices. Rational people will not purposefully engage in an activity that they know will leave them worse off. Suppose a student (who sits next to you in class) takes the flu shot at the beginning of the winter season. This is an example of a(n) positive externality. If productivity is high for a particular country, its residents tend to have a high standard of living. Identify the two reasons for market failure #1. Understand various aspects of the production possibilities frontier (or ppc)
