ECON 228 Notes week #2
exportunity
cost
rises
2-1-1: The limitation is expressed in terms of outputs
2-1-2: The nature of the relationship between the variables is
described by how a change in one variable can be combined
with a change in the other variables
2-2-1: Marginal rate of Technical Transformation measures the
Strength of the relationship between vanables on PPC
2-2-2: The economic meaning /interpretation of MRTpc
describes the opportunity cost (of producing one more car
expressed in the unit of computer).
2-3-1:opportunity cost rises as a result of MRT rising as an
economy repeats the transformation of the goods produced: what's
the reason of these rises? The use of resources in different
production facilities is taking place in a way that the best
are
fitting resources lex. manpower, tech., equipment, etc Ain the place
that s the most efficient when you are in more computers &
are
less cars
allocation of resources
2-4-1: The misguided policy action is to prohibit lighters in
order to prevent lung cancer
2-5-1: The casuality may be reversed in an analyst's model because
SUN
child birth
an erroneous casuality says that ( Yt Xttl) what happens
1st is the purchase of an SUV (the timeline isn't the right
way about thinking of the situation)
cause & effect (i.e. casuality) may not follow the time line,
if people take an action based on expectation
2-5-2: My own example of reversed casuality
computers & college
In depth example: A computer is bought by a person who
is entering college, but the computer is
bought by the student prior (before) to starting
college
Reversed casuality: The purchase of computers encourages
increases the # of people attending college(s)
INNU
IVI
5
will
are 10 empty seats left over
after having all passengers
boarded
