College aantekeningen
College aantekeningen Introduction To Economics And Business
College aantekeningen Introduction To Economics And Business
[Meer zien]Voorbeeld 4 van de 54 pagina's
Voorbeeld 4 van de 54 pagina's
In winkelwagengesponsord bericht van onze partner
Verkoper
Volgen
Voorbeeld van de inhoud
Lecture 1:Economics is about all (economic) interaction between individuals, organizations and
governments.
→ When this interaction increases in volume there is economic growth
Causes of poverty:
- Nothing causes poverty, poverty is the starting point. The real question is what
causes prosperity. → An economist would say that the answer is property rights
Why is there economic growth?:
- Property rights
- Economic growth is caused by productivity growth.
Why is there productivity growth?:
- Capitalism:
- Private property
- Firms and markets
- Technology, specialization and efficiency
There is often a conflict between efficiency (size of the pie) and inequality (division of the
pie)
The economy is the sum of all individual choices of people and organizations. People make a
tradeoff between their individual costs and benefits.
→ Think they are better off after their choices than without their choice
How do we make these choices?:
- In traditional economics ‘rational’ and ‘maximizing/optimizing’ behaviour is assumed
- Nowadays lot of attention for ‘bounded rationality’ and ‘cognitive biases’
Government use laws, rules and incentives to influence our choices
,The economic problem:
1. What has to be produced?
2. How should this be produced?
3. Who will receive the produced goods and services
Our ‘wants’ are unlimited … our resources are not → scarcity
→ For us (simple consumers) mostly time and money
Scarcity → Choices
Choices → Competition
Competition → Optimal allocation of resources
Optimal allocation of resources → Efficiency (& inequality)
Opportunity costs: the net value of your second choice
→ What would you have been doing if you weren’t here right now? (your second
choice)
- Net value = ‘value’ of alternative choice - costs of alternative
Explicit costs: What does it cost?
Implicit costs: What do I give up?
Economic costs = explicit costs + implicit costs
Which choice do we make?:
- Choice which has the higher value than the economic costs
- Economic rent: The difference between value and economic costs
What is the real price of buying a product?:
- The alternative product you cannot buy
- Relative prices
- If a burger is 4,- and a beer is 2,-
1. Price burger = 2 beer
2. Price beer = ½ burger
,What is the real price of producing a certain product?
- The product you cannot produce because of that
- If a firm can make 100 TV’s or 70 Laptops in one hour:
→ Price laptop: 10/7 TV’s
→ Price TV: 7/10 Laptop
Sunk costs: Costs that cannot be recovered
Sunk costs fallacy: Wrongly taking sunk costs into account in decision making
Sunk costs affect our emotions, we experience them as losses
Rough rules:
- If previously incurred costs can no longer be reversed, you should not include them in
your current considerations
- If previously incurred costs can be (partially recovered, you should include the costs
to be reversed as explicit costs in your current considerations
Marginal returns / benefits
- What is the return/benefit of one extra unit
Marginal costs
- What are the costs of one extra unit
Most efficient point:
- Marginal returns = marginal costs
- Or point closest to where MR>MC
, Capitalism: → Market economy
- The economic problem is ‘solved’ using markets and prices
- Society determines through demand what is produced and how this is produced
→ individual decisions of people and organizations
- Invisible hand → prices influence our opportunity costs and optimal choices
- Governments → incentives to influence prices
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper marychristinelijauco. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €6,49. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 75759 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen