Provided in-depth, complete coverage of fundamental concepts, theories, and applications within the field of microeconomics. Here’s a detailed description of what these notes might include:
### 1. **Introduction to Microeconomics**
- **Definition and Scope**: Understanding what microeconom...
Self-Interest you make choices that are in your self-interest choices
that you think are best for you
·
Social Interest choices that are best for society as a whole are said
to be in the social interest
Social interest has z dimensions :
1
Efficiency
2
Equity
Individual Transferable Quota (ITQ) the fish in the sea
·
Fairness is subjective
a topics that generate discussions illustrating tension between
self-interest and social interest :
·> Globalization
·> Information -
age monopolies
·
> Global warming
·
> Economic instability
, ·
Globalization the expansion of international trade , borrowing and
lending and investment
,
·
Marginal benefit the benefit of doing something one more time
the benefit from pursuing an incremental increase
in an activity
·
Marginal cost the cost of doing something one more time
the opportunity cost of pursuing an incremental
increase in an activity
MB MC
Cideally (
6 key ideas in economic way of thinking :
·> a choice is a trade-off
·
people make rational choices by comparing benefits and costs
· benefit is what you gain from something
· cost is what you must give up to get something
· most choices are "how-much" choices made at the margin
· choices respond to incentives
A CHOICE IS A TRADE-OFF
places scarcity and its implication ,
choice ,
at center stage
·
MAKING A RATIONAL CHOICE
a rational choice a choice that compares costs and benefits
and achieves the benefit cost
greatest over
for the person making the choice
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