PPB/PPF and Opportunity Cost

• Happiness is a choice.
• Pay attention to what you're multiplying.
• Always put x as the number, so that DC = IH.
• Coffee will equal how many hamburgers.

PPB/PPF

• PPB/PPF shows attainable/unattainable combinations of goods, focusing on production.
• Convex lines mean the slope changes at each point.
• A concave line means the slope is the same at each point (proportional).
• From left to right the opportunity cost is increasing because it's the slope.
• Slope is always an absolute value.
• Opportunity cost is always of a horizontal line axis, unless specified otherwise for the graph.
• Left to right = steep increasing opportunity cost.
• Horizontal = Islope| 0.
• Vertical |slope| = 1.
• <= Steep.
• A vertical line indicates the steepest slope.
• A horizontal line indicates the flattest slope.
• Check at the start and end.
• If the line is more vertical at the end then it's getting steeper compared to the start.

Opportunity Cost

• Increasing at a decreasing rate.
• Decreasing at an increasing rate.
• Depreasing at a decreasing rate.
• Is it going up or down?
• Opportunity cost Horizontal = steep - increasing.
• Opp for opp.

• = steep.

• Convex lines mean the slope changes at each point.
• The slope is the same at each point (proportional).
• Opportunity cost is increasing because it's the slope.
• Slope is always an absolute value.

Gender Theories

• Gender is an identity enacted through repeated behavior.
• Not biologically essential
• Social roles
• Systems maintain gender inequality.
• Narratives and symbols through media and ritual

Utility

• Attainable but inefficient.
• Budget line is linear.
• Focuses on a consumption plan for consumers.
• Slope = opportunity cost for consumers.
• 0 = horizontal.
• 1 = inverse.
• ∞ = total.
• For a budget line, the resources you have are income.
• To find income find intercepts of the line.
• when two tickets are $0, you make 5 burgers so $2.5 = $10.
• $10/20 tickets too.
• 0.05 = unit income.
• Do total money available/ number of product.

Macroeconomics

• In mixed economies, economic behavior is affected by elements of tradition, government command, and market incentives.
• A command theory government makes all decisions (good in wartime).
• A free market is decentralized.
• Market defines resource allocation.
• Command: wartime or country just beginning.

Economic Efficiency

• In general, economic efficiency occurs in a competitive market where price is free to reach its market-clearing level
• The free-market economy is self-organizing.
• People act in their own self-interest.
• The government can never impose equilibrium price because we believe in neo-liberalism.
• We want both consumption and production to be maximized.
• Productivity is a measure of how much output/income comes from one hour of work.
• Protectionism leads to less trade with foreign countries.

Issues

• Pandemic, old age, fertility
• Free market or invisible hand
• Use of trade allows to push past the PPB to new attainables that were once unattainable due to economic growth.
• Microeconomics is what is consumed by who
• Prices and quantities

Three Decision Makers

• Producer, consumer, government
• Buy if marginal benefit exceeds marginal cost.
• Specialization advantages includes skill-set and capacity building
• Market economy with trading through market transactions to increase Globalization

Causes Of Globalization

• Rapid declines in transportation cost.
• Rapid declines in information and technology

Economy Types

• Traditional economy: goes in static environments (ones that don't change)
• Command economy: centrally planned economy.
• Free market market economy price systems.

Government intervention

• Quotas, restrictions on imports - ways the government intervenes.
• Karl Marx believes with central authority comes corruption
• Pollution, pandemic = free-market fails to deal with urgency.
• Adam Smith: systematic view (key word).

Externalities

• Free markets that do not work well.
• Negative externalities includes pollution from company, so the government needs to intervene.
• Changing the resource allocation of resources like Equity shares.
• Efficiency is to use the least to make the most.
• The market-clearing level, where demand equals supply.

Chapter 2 Definition

• Factors of production society's resources
• Positive fact they don't need to be true facts can be a statement about a value, judgement
• Not normative is opinions like "ought", "should"

Theories

• Theories models explain and predict future events
• It's determined by variables, and assumptions
• Endogenous variable: within
• Exogenous variable: influences endogenous (outside)

Subsidies and Incentives

• Subsidies are an incentive to get you to do something. For example, $100 monthly for living in Anjou
• Correlation vs. causation has a positive correlation when ↑ impacts the other.
• When this happens, that occurs, causation: 3rd variable connecting it.
• Index # = Value of given year /Value of base year x 100 = #%.

Graphs

• Cross-sectional bar graph (many variables in one point in time).
• Time series: squiggly line of time on 2D-axis with one variable.
• Scatter diagrams display a relationship between two variables, and can be both time series or cross-sectional.

Relationships

• Income and consumption are positively related (go in same direction).
• If slope is negative before applying absolute value it's negatively related (opposite directions).
• Draw a tangent line and take point C and solve for slope, but subtract points first
• Technology leads to significant changes.
• Diminishing marginal response, you get more, but getting less.

Positive and Normative Keywords

• Positive keywords: it was, will be, etc.
• Normative keywords: should, ought to be, good, bad, right, wrong, ethical, unethical, etc.

CPI

• Percentage change in CPI = (New CPI - Old CPI)/Old CPI * 100
• Where 0 = no correlation.
• Vertical slope= ∞. Positive and negative correlation
• If horizontal, then slope = 0.

Rules And Equations

• There are no controlled experiments don't exist in this course.
• In an equation dependent variable on the left side.
• f travel T, S... function relation for travel means T.

Quantity

• Just picture the graph going longer: Marginal good response or you extend it
• First number because it's the base is 100.
• Qty supplied = Flow
• Government grants or subsidies products on Price
• Prices of other products
• Prices of imports (labor)
• Significant changes in weather supplier.
• Technology
• Stock variables at one moment in time

Variable Types

• Flow variables happen over a period of time eggs sold in a month is an example
• In general, spending is a flow.
• However, the money in the bank account is a stock.
• Upla and opp. for opp. = law of demand = (-) related.
• Factors (income, taste/preference, and population).

Demand, Change, And Shifts

• Change one at a time.
• If the income of the overall ↑ then shifts happen
• Consumers' income up
• Consumer prices of other goods up: if substitute
• Apples bought because orange prices
• Change in preferences Ex: cigarettes bad so left
• Significant change in weather: snow income: 19 normal good
• If population of Indians rises, they spice they'll go up.
• What is the income of normal goods
• Inferior goods income I q1 tickets.

Complements

• Compliments are cars and gas fall in price of one will increase the quantity demanded of both
• Movement along the curves: response to the price
• Can be both a shift and a movement: up and to the left is and lower in movemement Quantity suppled up price suppled (positive relationship) COVID-19 is a shock
• Shifted price from one point on graph

Disequilibrium

• Price above equilibrium with excess supply
• Any thing on but price

Change In Quantity

• All result with change with shift and movement or shift of curve is always coming
• Price celling down pressured
• Ecess: upurind pressured

Price Point Definition

• Qty + p= Law of demand = (-) related -Income Taste/preference . Population. Shifting always change a once
• Price point of disequilibrium, ≠ equi, increasing to supply, right shift Comparative stories experiments changing 1 variable
• Elasticity = how the a changes when
• Market equilibrium 100=10p1=3p
• Absolute price B of 1unit, relative price drives the Market

Consumers Behave

• Consumes try to find constant Caresites/veggies highest quantity of Cost=Supplier
• Supplier will try to produce more of the highest cost.
• No care about absolute Price only relative ,Demand supply only
• Large consumers & producers (Hydro) the son identical O0 = 90

Elasticities Can Changes

• Elasticities can occur and if you have an economic boom, post pandemia, and this is war and the vice-versa will bring market
• If market clearing is not doing the the Market would be called Market equillibrium

Quantity & Elasticities

• Low Quantity & low Elasticities, the quantity changes when the price changes Chapter 6
• <1=Inelastic = more expensive
• 0 infinity 0 perfectly when will is =1 a unity Elastic,

more Elastic= Very, luxary goods

Price & Elasticity

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What Will Cause Changes In elasticity

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What Impacts

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What Will Impulsed

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What Does It Impact

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