Intro to Economics PDF

INTRO: COSTS. We can no longer get to places we cannot get to by walking. MARGINAL UTILITY. How much should you eat at an all-you-can-eat restaurant? MARGINA...

INTRO: COSTS. We can no longer get to places we cannot get to by walking. MARGINAL UTILITY. How much should you eat at an all-you-can-eat restaurant? MARGINAL UTILITY. It refers to the additional SUPPLY & DEMAND. Why are there pairs of satisfaction that a person receives from consuming jobs whose wages are vastly different? one or more unit of a good. satisfaction RESOURCE SCARCITY. Why are the prices of MARGINAL COSTS. It is the additional cost incurred snacks at bus stops more expensive? when producing one more unit of a good or service. IMPLICIT COST. Why do we sometimes refuse cost “free” stuff? INCENTIVE PROBLEM. Is free tertiary education a net good to our society? RESOURCE = WANTS. When looking for a A factory produces 100 units of a product at a total suitable partner, what should be your cost of ₧1,000. Producing 101 units raises the total considerations? cost to ₧1,010. ECONOMICS. the study of how we coordinate our unlimited wants and desires given scarce resources. - DISMAL SCIENCE - the study of how to get people to do things they MARGINAL BENEFITS. It is the additional benefit would not do so that they act consistently with the received from consuming or producing one more unit interest of others. of a good or service. benefit A small coffee shop is considering whether to extend its operating hours by one hour in the evening. The shop's owner wants to evaluate whether the additional revenue generated during that extra hour justifies staying open longer. Initial Situation: Maria has studied for 4 hours, and she expects to get an 85% on her exam. Additional Hour: Maria decides to study for one more hour (making it 5 hours total), and now she expects to score 90% on her exam. BENEFITS. Cars allow us to get to places we cannot get to by walking. COSTS. Car accidents happen so frequently, and lives are lost in them. Economic Decision Rule: Policy: BAN CARS: MB>MC”, Do (more of) it!" BENEFITS. No more accidents. MB