New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Econ 1, Week 1 Notes

by: Mariela Ortiz

Econ 1, Week 1 Notes Econ 1

Mariela Ortiz
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Principles of Economics-Micro

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Principles of Economics-Micro notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

These notes cover the three lectures in Week 1
Principles of Economics-Micro
Ryan Oprea
Class Notes




Popular in Principles of Economics-Micro

Popular in Economics

This 1 page Class Notes was uploaded by Mariela Ortiz on Thursday September 29, 2016. The Class Notes belongs to Econ 1 at University of California Santa Barbara taught by Ryan Oprea in Fall 2016. Since its upload, it has received 3 views. For similar materials see Principles of Economics-Micro in Economics at University of California Santa Barbara.


Reviews for Econ 1, Week 1 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/29/16
Comparative Advantage: The Driving Force of Specialization Absolute advantage: the ability to produce a good using fewer inputs than another producer Used to compare productivity of one person, firm or nation to another Opportunity cost: whatever must be given up to obtain some item Comparative advantage: the ability to produce a good at a lower opportunity cost than another producer Total production in the economy rises when each person specializes in producing the good for which he or she has a comparative advantage Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs Doesn’t need to be precisely in the middle Applications of Comparative Advantage Imports: goods produced abroad and sold domestically Exports: goods produced domestically and sold abroad International trade can make some individuals worse off even as it makes the whole country better off Allows all countries to achieve greater prosperity Prices Signal Comparative Advantage Prices define self-interest Cause you to want to do things that you normally wouldn’t want to Everyone follows self-interest to some degree Everyone ends up in their c​omparative advantage i ​ f the prices are right Profit = Benefit - Cost Take action only if profit is positive Cost is the value of resources foregone Explicit: outlay of money Price of object Acquiring object may Implicit: not an outlay of money


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.