University:
University of Kent
Course:
ECON3040 | Principles of Economics
Academic year:

2023
Views:

329

Pages:

1
Author:

Elyeon B

4 PRINCIPLES OF ECONOMICS .cost-benefits evaluate costs and benefits focus on cost/benefits not framing (could lead to poor decision making ) opportunity cost reflects scarcity all choices require a trade off ignore sunk costs (cost that cannot be reversed) visualize opportunity costs using ppf curve Interdependencies when making decisions .between each of your choices .between people/business .between markets .through time Marginal principle ( additional output gained/benefit by making a decision) cost-benefit principle ( compare marginal cost to marginal benfit) opportuity cost principle ( compare benfits to next best alternative) when marginal benefit = marginal cost , continue WEEK 2 (2 Oct) DEMAND CURVE SHIFTS normal goods ( income increase = demand increases) Inferior goods ( income increases = demand decreases) prices of related goods (e.g. bread & butter , increase in price of butter = decrease in demand for bread ) Expectation ( if you expect house prices will rise = buy a house now ) type/number of buyers ( more buyers= - increase in demand) change in price causes movement along demand curve Supply

Principles of Economics Basic

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