Popular in Principles of Economics: Macroeconomics
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This 3 page Class Notes was uploaded by Sidney Hong on Monday September 21, 2015. The Class Notes belongs to ECO 106 at Pace University taught by Cesar Castope in Fall 2015. Since its upload, it has received 37 views. For similar materials see Principles of Economics: Macroeconomics in Economcs at Pace University.
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Date Created: 09/21/15
Fall 2015 Principles of Economics Micro ECOlO6 CRN 72490 MondayWednesday 900 AM 1025 AM Professor Cesar Castope 0921 Opportunity Costs 0 Next best alternativeoption 0 Varies per person and their perceived expense 0 Preferences of likes can increasedecrease the opportunity costs Economic Models Assumptions 1 There are 2 goods 2 Each good has its own opportunity costs 3 Each good has tradeoffs 4 Time is one of the many limited resources Production Possibility Frontier PPF Good 1 Good E 0 Any point on the curve is both possible and ef cient 0 Within the curve is inef cient 0 Outside the curve is not possible PizzaC Robots K o Shifts of the PPF indicate an increase or decrease in the factors of productioninputs Which decrease the quantity of outputs 0 As one product increases over the other in quantity so does the opportunity cost Eoonomi Groin91139 w39rtho ut Development Eoonomi Grow 39 with Development Luznary o Luznary Goods 7 39 39 Goods and and Semi5 Snath Neoasi a NECESi E Economic Growth With Development 0 Increase in efficiency of producing necessities 0 As Luxury Goods and Services increases Necessities Will increase at a decreasing rate Marginal Principle 0 Rational and egoism o Exceptions include examples such as fanatics Principles of Diminishing Returns 0 Increasing factors or products will increase output at a decreasing rate Nominal vs Real Principle 0 Nominal value value statedpayed for 0 Real value Opportunity cost Absolute Advantage 0 Sum output is higherhighest Comparative Advantage 0 Lowest opportunity costs Specialization 0 Assuming market ef ciency 0 Price is 1 determinant that work as incentives o Lawsregulations Assignments due 0923 0 Blackboard homework and quizzes