Week 2 notes
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This 1 page Class Notes was uploaded by Vanessa Notetaker on Saturday January 23, 2016. The Class Notes belongs to at Florida State University taught by Calhoun in Winter 2016. Since its upload, it has received 7 views.
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Date Created: 01/23/16
WEEK 2 NOTES Property rights change the incentives for individuals When owning property, the owners will often seek to please others in order to benefit. There is an incentive to take care of PRIVATE property rather than public property. Incentives created by private property rights: Stronger incentive to give proper care with private rights Conserve for the future so you won’t run out of resource Stronger incentive to think about how these resources can benefit or be of value to someone else Minimize harm to others when they use your resources o You can be held liable for harm to others on your own property. This creates an incentive to create a safe environment to mitigate harm. Violating property rights can lead to undesirable behavior Production Possibilities Curve (EPC) PPC can also be called PP Frontier Good 1 Efficient Unattainable Inefficient 0 Good 2 The PPC can shift Shift out: growth, more production Shift in: shrink in, less production Law of Comparative Advantage
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