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Micro-Economics LU1 (TEN PRINCIPLES OF ECONOMICS (Trade Can Make Everyone…
Micro-Economics LU1
TEN PRINCIPLES OF ECONOMICS
Trade Can Make Everyone Better Off
Markets Are Usually a Good Way to Organize Economic Activity
People Respond to Incentives
Governments Can Sometimes Improve Market Outcomes
Rational People Think at the Margin
A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services
The Cost of Something Is What You Give Up to Get It
Prices Rise When the Government Prints Too Much Money
People Face Trade-offs
Society Faces a Short-run Trade-off between Inflation and Unemployment
Economic Models
The Circular-Flow Diagram
The Production Possibilities Frontier
Shift in the Production Possibilities Frontier
A PARABLE FOR THE MODERN ECONOMY
The Production Possibilities Curve
The Farmers And Researchers Production Possibilities Frontier
Trade Expands the Set of Consumption Opportunities
The Farmers And Breeders Production And Consumption
COMPARATIVE ADVANTAGE AND TRADE
COMPARATIVE ADVANTAGE
OPPORTUNITY COST AND COMPARATIVE
ADVANTAGE
ABSOLUTE ADVANTAGE
