Microeconomics Lecture Notes
Microeconomics Lecture Notes ECON 2010
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This 2 page Class Notes was uploaded by Alexis Newcomer on Sunday January 24, 2016. The Class Notes belongs to ECON 2010 at Western Michigan University taught by Bill Kern in Winter 2016. Since its upload, it has received 11 views. For similar materials see Principles of Microeconomics in Economcs at Western Michigan University.
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Date Created: 01/24/16
Chapter 1 Lecture Week 1 112 Limits Alternative sand Choices Scarcitv and Choice Limited resources 0 Land spacenatural resources 0 Labor human beings and capability 0 Capital goods produce goods and services 0 Entrepreneurial ability variety of different skills The entrepreneur must be willing to accept or tolerate risk The entrepreneur must be open to accept profitable opportunities Limited resources Limited production Human wants are unlimited in nature The mere physical ability of something does not mean it is scarce The desire has to be greater than the supply available for it to be economically scarce The problem with scarcity is chronic something that affects us that doesn t go away This cannot be solved like a math problem the solution is searching for improvement Pu rposeful Behavior Economics assumes that human behavior reflects rational selfinterest We want to improve circumstances Purposeful behavior simply means that people make decisions with some desired outcome in mind Mardinalism Comparind Benefits and Costs Mardinal analvsis comparisons of marginal benefits and marginal costs Marginal incremental change Compare marginal benefits vs marginal costs opportunity costs Opportunitv cost value of opportunities in their next best use What are the additions of benefits vs what is the cost Ex outoftown restaurant amp tipping Benefits Helping others Incentive for servers feedback You re the judge of service A rational selfinterest person would not leave a tip Another example of marginal benefit vs marginal cost is people s choice of how long they should sleep in
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