MCD 2020 Microeconomics, 22 June

2022 Wednesday
Ceteris paribus, 2 factors are resources and technology should remain the same

Resources (the things you need for production), land labour capital

Exogenous, doesn’t have a direct impact on the graph

Endogenous, has a direct impact on the graph

Specialization is for efficiency

Why is CPI a factor in increase of economic growth?

Investment in capital goods will be better for the long run as it will produce more goods later on
which will directly relate to more profit as you can sell more and ppf curve will expand

Absolute advantage is who is more efficient

Comparative advantage is who is more effective

Basis for trade is comparative advantage

27 June 2022 Monday

Demand: the quantity that people one willing and able to buy at any price

Quantity demanded: the quantity that people are willing and able to buy at a specific price

Inverse relationship of Price and Quantity demand

Price go down, Quantity demand go up, vice versa

For a demand to occur, there should be willingness and ability to buy a certain good or services.