THEN LY
EC Mies
HL
Alisa VolV:ov/a IfeW ioao-2Z
•VMIAI/ /V/ 11
, - sVucL^ o^r V\ou; soae.+cj alloca^e^ s c o t c h - re^ou-rceA wieet
imUmited an^ neecis
° dear — more, des'vreci, haTcJer ArO ge,t
° of>poHu.n'i-V-tj cost — nex-t beA^: aV-VcY'VNS'Vive tP aVvj d-*-CAS\o\n
0 Posi-Kve ecoY\om\cA> - c.&'ri be proven "brue or -false
° KJorma-tlve exooomicA- carnoV be proven Vme o\o false
FVJNDAMtNTAL QUESTIONS
^ What f pro Auce
1-* HOW to produce
^ Fov* whom to proAuc
:e
ProAucVvon PossitvliVveSi Cut've (PPc)
PPC sWows -Vbe Aiffereof
Comblra^looS Of goods 'and
Services "bbaf can be produced
VjHV\ a given drnounA of
resources in "Vineir Tnosf
good E>
efficient wag
FACTORS OF PRODUCTION
^ IdVTcli ~ na-Vura\ yesouree
Cap\Va\“ goods used -Vo produce oVWr goods and
Services
enVenpriS-C " a person who organises -Vhe.
production proceAS and dances a risVi.
, Clv'Culs.V"' FUk a ; lAo«Ae,l
Stock — iv^poirts
— expOT-Vs
Rea\ GbP = C^l^G + Cx -
C= Consuv>.p-Vioh
I - \VW<2S+VYier)+
G ~ (jov^ spend ing
X - t-X pocis
M = I'm^oV'ts
, I
~ c|uar\V>-V^ cor\sume\rs aire. wv\Vm0 ahc^ atle "Vo pu^cV^ase
2\ pvvce leve\
NON-^Kt bET£RM\NAWTS *
T ~ Wends /preferences
Y ~ income
P - pof>u\a-V\on
P" price ot- yeiaVed opods
E " expectations
R.~ rate of \nteresV
° increase in demand —* Sbit-A CUrv/e to r'^V
o increase in ^uan-tit-^ demanded —> move aiong curve
Lauj of demand ' as dbe price decreases, "EVh
c^uantitit demanded increases
dssuvnpfions
- income etfecA
SUbst-itute efteoV
dirni nisVsing returns
, ~~ 6^wav\Vi-\-y ^o^ucev-s a\re unUmc^ 3r»A afeVe
a-i tach price WeV
WOM- PUlCt btTtRHm/\MT5 *•
^ CosV o£ -PacAorS Of produc\ior»
^ Tectanolo^y
^ Gov0mmeia+ \r\feirvenV\on
^ Expecfa-Hohs of producers
^ Smbs-fi'Vu'Vc. producers
Law o-P supply - as -Vhe. pinice Increases -Wic yuan-VHy
supplied \ increases
assumptions
- dimin islniny returns
~ Increasing marginal cosH
0 Consumer surplus — dine tene-f-id consumers receive, ujVneo
Luyiny d produot unde^r price dhey ane. willing -Vo pay
0 Produe-e/r sunplus - dhe bene-fiV producers receive dbr
selliny d product above price willing to pay
P.$. t- + v3ov^ inter'ven-tion = tOrnmunity surplus
, ° ConsUYY^ev' Y'a-Vio'na\iJc^ — uV\\i^y m3X\mv.sa-\:ion Uud-er
vnfov'maVvon
^ da.av' preferences
^ ^'CjVAy deve\opeci ar\3\^-V\cal s\c\\\s
^ perfect mforrra-Hon
^ yns>x\vr>isa^on of personaA saWsfacVvori
Peop\e Pave Z vva^s, of -f'n'vnk^n^
Js ^
Svjsfem l ^>^-sVe.m 2_
_\mpress\ors and \nfwVUon -rafvonaA WiinWing
~ &QX\Vt. n\o$,\ of fVie Vs me " On Sfand Vu , ac-^iv/e only
when neecieci
VAncontroWeeP - ControAVed
~ fast - Story
HtUWSTICS •
° 3V^cV\OrIt\g — We ose of srrele^ant srvforvvsaVvon as a
reference posnf for V\eVp\ng fo maVe an esVsmafe of an unWnoum
piece of information
° aviailabi\iVvj ~ Overestima-fincj Vre ViVceV^hood of sometrincj
Pappenincj WcaiASd a Sivnitar event WaS happened, recerfivj
0 rram\r*0 _ decision-maicin^ is affected btj tfse wavj in rjinich
a proPtem is stated , or framed
Conclusion ’• Nationality is bounded ClimitecO ,
EC Mies
HL
Alisa VolV:ov/a IfeW ioao-2Z
•VMIAI/ /V/ 11
, - sVucL^ o^r V\ou; soae.+cj alloca^e^ s c o t c h - re^ou-rceA wieet
imUmited an^ neecis
° dear — more, des'vreci, haTcJer ArO ge,t
° of>poHu.n'i-V-tj cost — nex-t beA^: aV-VcY'VNS'Vive tP aVvj d-*-CAS\o\n
0 Posi-Kve ecoY\om\cA> - c.&'ri be proven "brue or -false
° KJorma-tlve exooomicA- carnoV be proven Vme o\o false
FVJNDAMtNTAL QUESTIONS
^ What f pro Auce
1-* HOW to produce
^ Fov* whom to proAuc
:e
ProAucVvon PossitvliVveSi Cut've (PPc)
PPC sWows -Vbe Aiffereof
Comblra^looS Of goods 'and
Services "bbaf can be produced
VjHV\ a given drnounA of
resources in "Vineir Tnosf
good E>
efficient wag
FACTORS OF PRODUCTION
^ IdVTcli ~ na-Vura\ yesouree
Cap\Va\“ goods used -Vo produce oVWr goods and
Services
enVenpriS-C " a person who organises -Vhe.
production proceAS and dances a risVi.
, Clv'Culs.V"' FUk a ; lAo«Ae,l
Stock — iv^poirts
— expOT-Vs
Rea\ GbP = C^l^G + Cx -
C= Consuv>.p-Vioh
I - \VW<2S+VYier)+
G ~ (jov^ spend ing
X - t-X pocis
M = I'm^oV'ts
, I
~ c|uar\V>-V^ cor\sume\rs aire. wv\Vm0 ahc^ atle "Vo pu^cV^ase
2\ pvvce leve\
NON-^Kt bET£RM\NAWTS *
T ~ Wends /preferences
Y ~ income
P - pof>u\a-V\on
P" price ot- yeiaVed opods
E " expectations
R.~ rate of \nteresV
° increase in demand —* Sbit-A CUrv/e to r'^V
o increase in ^uan-tit-^ demanded —> move aiong curve
Lauj of demand ' as dbe price decreases, "EVh
c^uantitit demanded increases
dssuvnpfions
- income etfecA
SUbst-itute efteoV
dirni nisVsing returns
, ~~ 6^wav\Vi-\-y ^o^ucev-s a\re unUmc^ 3r»A afeVe
a-i tach price WeV
WOM- PUlCt btTtRHm/\MT5 *•
^ CosV o£ -PacAorS Of produc\ior»
^ Tectanolo^y
^ Gov0mmeia+ \r\feirvenV\on
^ Expecfa-Hohs of producers
^ Smbs-fi'Vu'Vc. producers
Law o-P supply - as -Vhe. pinice Increases -Wic yuan-VHy
supplied \ increases
assumptions
- dimin islniny returns
~ Increasing marginal cosH
0 Consumer surplus — dine tene-f-id consumers receive, ujVneo
Luyiny d produot unde^r price dhey ane. willing -Vo pay
0 Produe-e/r sunplus - dhe bene-fiV producers receive dbr
selliny d product above price willing to pay
P.$. t- + v3ov^ inter'ven-tion = tOrnmunity surplus
, ° ConsUYY^ev' Y'a-Vio'na\iJc^ — uV\\i^y m3X\mv.sa-\:ion Uud-er
vnfov'maVvon
^ da.av' preferences
^ ^'CjVAy deve\opeci ar\3\^-V\cal s\c\\\s
^ perfect mforrra-Hon
^ yns>x\vr>isa^on of personaA saWsfacVvori
Peop\e Pave Z vva^s, of -f'n'vnk^n^
Js ^
Svjsfem l ^>^-sVe.m 2_
_\mpress\ors and \nfwVUon -rafvonaA WiinWing
~ &QX\Vt. n\o$,\ of fVie Vs me " On Sfand Vu , ac-^iv/e only
when neecieci
VAncontroWeeP - ControAVed
~ fast - Story
HtUWSTICS •
° 3V^cV\OrIt\g — We ose of srrele^ant srvforvvsaVvon as a
reference posnf for V\eVp\ng fo maVe an esVsmafe of an unWnoum
piece of information
° aviailabi\iVvj ~ Overestima-fincj Vre ViVceV^hood of sometrincj
Pappenincj WcaiASd a Sivnitar event WaS happened, recerfivj
0 rram\r*0 _ decision-maicin^ is affected btj tfse wavj in rjinich
a proPtem is stated , or framed
Conclusion ’• Nationality is bounded ClimitecO ,
